Simply put, having equity means your home is worth more than the amount you owe on it. And now, there is an increasing number of American homeowners who have it. A new report studied the number of mortgaged properties that are equity rich. Homes whose estimated market value is at least 50% more than the amount owed on them are considered equity rich.
The Rise in Homeowner’s Equity
During the second quarter, 27.5% of the 55.2 million mortgaged homes in the country qualified as equity rich. That’s up from 26.5% during the first quarter. Todd Teta, chief product officer with ATTOM, says the improvement is another sign of the market’s strength despite a challenging environment. “Homeowners saw their equity rise far and wide throughout the United States during the second quarter of this year in yet another sign of the housing market punching back against the coronavirus pandemic,” Teta said. “More property owners rose into the equity-rich territory and escaped the seriously underwater lane, putting more money into the average household.” Click on the link for more detailed information (source).
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