Move Up Buyers - Join The Party!

Housing demand from move-up buyers selling their current properties to replace them with a more expensive home is on the rise as home equity levels improve.  As home prices continue to increase, so does demand from move-up buyers, who are now able to provide a substantial down payment on a new home after gaining value on rising equity, the latest report from real estate data firm FNC revealed.  "An important sign of a healthy and sustainable recovery is increased housing turnover driven by trade-up buying, which is more or less discretionary spending," FNC Director of Research Yanling Mayer said.

Much of the desire for move-up buyers lies behind rising rates.  "They know if they don't move now, they might be kicking themselves all over again in three months," said Redfin real estate agent Eric Tan.  According to Daren Blomquist, VP of RealtyTrac, 18.5 million homeowners have at least 20% equity or more, putting them in a prime position to sell and 8.3 million owners should have at least 20% equity in the near future if prices continue to appreciate.  "This reflects a market that is transitioning from investor purchases of distressed homes to primary home purchases," said CAR economist Leslie Appleton-Young.

Source: HousingWire 

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