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Mon Dec 28, 2020, 11:01 PM

Home equity wealth in America is booming

Homeowners enjoyed the largest year-over-year home equity gain in six years during the third quarter.

Americans with mortgages (roughly 63% of all properties) saw their home equity increase by an average of $17,000 between July and September 2020 as compared to the same quarter a year ago, according to a quarterly report from mortgage data and analytics firm CoreLogic.

Home equity for those homeowners rose by a total of $1 trillion over the year, with the average home equity in the U.S. sitting at $194,000 by the end of September.

One of the biggest drivers of home equity is price growth over the last several months, CoreLogic Chief Economist Dr. Frank Nothaft told Yahoo Money. We saw a huge shortage of homes and the Federal Reserve dropping mortgage interest rates, which led to an acceleration of home prices.

https://money.yahoo.com/home-equity-wealth-in-america-is-booming-150510787.html

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Reply Home equity wealth in America is booming (Original post)
Zorro Dec 2020 OP
Irish_Dem Dec 2020 #1
Deuxcents Dec 2020 #2
JenniferJuniper Dec 2020 #3
unblock Dec 2020 #4
padfun Dec 2020 #5
brush Dec 2020 #7
bamagal62 Dec 2020 #6

Response to Zorro (Original post)

Mon Dec 28, 2020, 11:05 PM

1. Cities in my state have a severe housing shortage.

The last recession, with the housing bubble bursting, builders stopped building.

Housing prices are now soaring because there are not enough houses for buyers.
Houses sell within hours of hitting the MLS.
And final sales price is often way over asking price.

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Response to Zorro (Original post)

Mon Dec 28, 2020, 11:06 PM

2. Beware

This is the cycle I saw in 2006 as a Realtor.. I could not deposit my commission checks fast enough..and then... what goes up comes down.. fast n hard.

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Response to Zorro (Original post)

Mon Dec 28, 2020, 11:12 PM

3. In many areas inventory is severely limited

and the competition is driving prices even higher.

I'd love to sell my house that is now too big for me and use that equity to downsize and eliminate a mortgage. But there is literally nothing out there I'd want and if something does pop up, it's gone almost instantly. So the cycle continues and my house, which I know a growing family looking for something bigger would snatch up in half a minute, stays off the market.

And meanwhile so many young people can't come close to coming up with a down payment for even a starter condo. When this crashes, it's going to crash spectacularly.

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Response to Zorro (Original post)

Mon Dec 28, 2020, 11:25 PM

4. Yeah, my house is still worth less than it was when I bought it in 2007.

I like to think I have my talents, but timing the real estate market is definitely not among them....

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Response to Zorro (Original post)

Mon Dec 28, 2020, 11:47 PM

5. I'm one who's house is skyrocketing.

In Northern Cal, housing has been going up for a while now. I refi'd recently and paid off a $22,000 HVAC and ductwork I had done last summer. And still had money left for savings. But I saw this happen in 2005 and 2006, so I am wary about the future. At least I got the AC taken care of before the bottom hits. When the downturn happens, we will just buckle down here.

Also, my wife and I have 4 bathrooms, 3 with showers and a utility room bathroom and we have 4 bedrooms. We do have lots of room that would be good for a family of 6 or so. If I sell now, it would be hard to get a good deal on a smaller house and really wouldn't get much of a lower payment, so we are just going to buckle down and stay here.

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Response to padfun (Reply #5)

Tue Dec 29, 2020, 01:38 AM

7. My equity is up too. I'm considering selling, pocketing the money and renting...

to see what happens. If there's a repeat of '08-'09, may be able to jump back in and get a great deal on a bank-owned property.

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Response to Zorro (Original post)

Tue Dec 29, 2020, 01:29 AM

6. Houses in my neighborhood in Chicago

Are going like hotcakes. Some selling before they hit the market. I had a real estate agent cold call me last week asking if I was willing to sell. I said, no. He even pushed further asking, if I knew how long it might be before Im willing to do so. He asked, If you could guess when you might be moving next, did I know when that would be. It was an odd question. I laughed and said I wish I could predict my future like that.

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