Page 6 - Winter 2019 Sellers Guide

26% of Homes with a Mortgage are Now Equity Rich!

Rising home prices have been in the news a lot lately and much of the focus has been on
whether home prices are accelerating too quickly, as well as how sustainable the growth in
prices really is. One of the often-overlooked benefits of rising prices, however, is the impact
that they have on a homeowner’s equity position.

Home equity is defined as the difference between a home's fair market value and the
outstanding balance of all liens (loans) on the property. While homeowners pay down their
mortgages, the amount of equity they have in their homes climbs each time the value of their
homes go up!

According to the latest Equity Report from ATTOM Data Solutions, “nearly 14.5 million U.S.
properties were equity rich — where the combined estimated amount of loans secured by the
property was 50 percent or less of the property’s estimated market value — up by more than
433,000 from a year ago to a new high as far back as data is available, Q4 2013.”

This means that over a quarter of Americans who have a mortgage would be able to sell
their homes and have a significant down payment toward their next home. Many who sell
could also use their new-found equity to pay off high-interest credit cards or help children
with tuition costs.
WA
35.3% ME
The map on MT ND VT - 32.7%
the right shows OR 26.6% 21.8% MN NH - 19.6%
ID
the share of 33.6% 26.4% SD 22.2% WI NY MA
MI
WY
properties with 19.5% 20.6% 23.4% 34.9% RI - 24.8%
PA
IA
a mortgage in NE 16.6% 22.0% CT
NV 17.2% OH NJ - 23.6%
IL
IN
each state that 27.0% UT CO 15.8% 20.3% 16.8% WV VA DE - 18.4%
were equity CA 28.0% 29.6% KS 18.6% KY 16.9% 18.0% MD - 18.7%
MO
42.5%
rich in Q3 2018. 20.3% 18.6% DC - 28.1%
NC
AZ NM OK AR TN 20.4%
SC
24.0% 17.0% 13.8% 14.6% 17.5% Percentage
MS AL GA 0% - 14.9%
17.6% 15.8% 16.7% 15% - 19.9%
AK LA 20% - 24.9%
25% - 29.9%
17.3% TX 12.3% 30% +
25.2% FL
25.2%
HI UNITED STATES
Bottom Line 39.4% 25.7%
If you are a homeowner looking to take advantage of your home equity by moving up to your
dream home, let’s get together to discuss your options!

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