Article by: Suzanne De Vita-RISMedia’s online Editor
Homes in markets across the nation have regained value since the recession, affording homeowners the ability, once again, to accumulate wealth through equity-or become, as I like to call it, “equity stacked”!
Two recent reports confirm the trend: one, from S&P/Corelogic: the other by ATTOM Data Solutions, owner of RealtyTrac.
Homeowner wealth, according to S&P, has more than doubled since 2011, expanding on a national scale to $12.7 trillion from $6.1 trillion, in tandem with the 40 percent boost in the value of single-family housing. For the Average Joe next door, $12.7 trillion, breaks down to an average $11,000-or $30,000 if they live in California, Oregon or Washington State. The upward momentum in equity, S&P cites, has a positive economic implications, as well: more than $100 billion in consumer spending, which includes dropping stacks (see what I did here?) on home improvements.
Close to one in every five U. S. homeowners with a mortgage is now equity rich thanks to a combination of rising home prices and lengthening homeownership tenures, states Darren Blomquist, senior vice president at ATTOM. “Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016, and homeowners who sold in the third quarter had owned their home an average of 7.94 years- a new high in our data and substantially higher than the average homeownership tenure of 4.26 years pre-recession.
Dual forces, as indicated in both the S&P and ATTOM reports, are at work here. The ongoing trend toward recovering prices, and activity in the market to match, is turning more homeowners into equity stackers, flush with wealth for the future.
Article by Suzanne De Vita -RISMedia’s online news editor.
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