March 04, 2019
The Status of American Home Equity
A solid benchmark for how the American housing market is performing is the wealth that the average American is able to build in the form of their home equity. It is, after all, a hallmark of the American dream that citizens are able to build their lives around establishing homes and benefit in the long run from their ownership of them.
In its Equity Report issued in September 2018, CoreLogic revealed that the status of equity for homeowners in America underwent a great increase over the past year, continuing its trend from the previous five years.
In terms of year-over-year increase, there was an approximately $1 trillion boost of equity in the hands of homeowners from the same time in 2017. More than 550,000 homeowners went from negative equity into the zone of positive equity during that period. Overall, there was an annual increase of 12.3 percent.
Later came CoreLogic’s Equity Report issued in December 2018, reflecting what we have been noting in many of our blog posts over the past few months: the slowing price growth in the housing market.
In terms of year-over-year increase, there was an approximately $775 billion boost of equity in the hands of homeowners from the same time in 2017. Overall, there was an annual increase of 9.4 percent.
Many in the housing industry tend to interpret slowdowns as signs of gloom and doom—but we are nowhere near a market like that seen during the crisis of 2008, where we were talking about not drops in growth but actual reverses of course and massive foreclosures (which are, by definition, forfeitures of any equity that may have been built by homeowners).
Yes, we are in market correction territory. But the amount of equity Americans are building in their homes continues to grow, even if at a less robust rate. This really should be interpreted as positive news.
Topouzis & Associates, P.C. is your bulwark against problems with title in real estate that occurred in the past. We do title searches and ensure you are gaining clear title to your property—and we back our services with offerings of title insurance (click here), in case someone along the line of ownership did something that will weaken your title at some point in the future.