While we often talk about the ‘I’ word in real estate (inventory), this week we are focused on the ‘E’ word – equity! Just last week, CoreLogic® released their Homeowner Equity Insights Report which provides quarterly coverage at the national, state and statistical metro areas pertaining to negative equity share and average equity gains.
In short, the report revealed that as of Q1 2021, homeowners averaged a 19.6% increase in equity compared to Q1 2020. We have compiled the key points and summarized them for you in the graphic below and encourage you to read the report in full: CoreLogic® Homeowner Equity Insights.
Note: Anytime we see large home price gains, concerns emerge over a bubble that is about to burst and a pending ‘crash’. Countless industry sources have addressed this consideration, and CNBC recently summarized it best: “Home prices are not, however, expected to crash, since there is still strong demand for housing, and the demographics support that going forward. As prices moderate, buyers will come back. Unlike the last time home prices crashed, today’s mortgage underwriting is far more stringent.”
If you have any questions about how to maximize the opportunities with your current equity OR create a strategy that minimizes your risk of a future negative equity position, please do not hesitate to reach out. The analysis and considerations we arrive at together can create a custom road map to the lifestyle you want to achieve. Let’s do this! ~ Mark
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