In the last several years, much of the nation has witnessed what industry experts continue to refer to as a booming housing market, with home prices soaring and demand growing among buyers. Silicon Valley is often on the map as one of the priciest markets, but along with that comes an added benefit: EQUITY.

In a new report released just a few days ago by ATTOM Data, it was revealed that 42% of mortgages nationwide are now equity-rich (as of Q4 2021). Furthermore, equity-rich homes outnumber underwater properties by a ratio of 13:1, and on a local level, San Jose is the 3rd most equity-rich city in the nation (among cities with a population over 500,000). The percentages below refer to the amount of mortgaged homes that fall into the equity-rich bracket.

What does equity-rich mean? ATTOM Data defines ‘equity-rich’ as when ‘the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.’ One of the most interesting findings from the study was that quantity of equity-rich locales grew nearly 40% and over 30% in Q3 and Q4 of 2021 respectively – those are huge increases!

Where are most of the equity-rich counties located? Not surprisingly, 35 out of the top 50 equity-rich counties are in the West, which also accounted for 9 out of the top 10 states with the highest levels of equity.

What do I do now…? Homes of Silicon Valley has one piece of advice that applies to nearly every renter, owner, potential seller, buyer and investor: the next right thing. Whether you are a current homeowner, a potential buyer or seasoned investor – the next thing to do is what is best for your situation and goals. It may mean getting a current home valuation to see if you have as much equity (or even more!) than you think. It may mean considering downsizing and/or buying a second home or vacation property. It may mean taking equity out of this home to invest in another in a more affordable and growing market.

But whatever you decide to do, we are committed to helping you ensure it is the next right thing for you. Please let us know if we can help! ~ Mark