Home equity just hit an all-time high for Americans. And while this is great for homeowners, what effects could this have on the housing market? Will house hoarding become a new trend as homeowners “lock in” with their rock-bottom mortgage rates? Will those who are equity-rich take their profits and move to cheaper markets, causing prices to skyrocket as they bid higher than local buyers can? Molly Boesel, Principal Economist at CoreLogic, is on to answer these questions and more!
CoreLogic’s latest Homeowner Equity Insights report has a clear takeaway: Americans are equity rich—really equity rich. On average, American homeowners have hundreds of thousands of dollars sitting in home equity, with some of the priciest housing markets having millions! This is causing a new type of investor, the “accidental investor,” that could keep housing supply locked up.
Molly gives her take on why so many homeowners are refusing to sell, whether or not mortgage rates will fall substantially next year, when refinancing will finally start to rise again, and if foreclosure risk is even a relevant worry in today’s rock-solid economy.
In This Episode We Cover:
Latest homeowner equity numbers that put owners and sellers in an even better position
The most and least home-equity-rich housing markets in America
Foreclosure risk and how “negative equity” completely flipped since the Great Recession
The rise of “accidental investors” who are keeping more housing supply to themselves
Molly’s strong mortgage rate prediction and where she thinks rates will be by the end of this year
Whether or not equity could explode once again as buyers get back into the market
And So Much More!
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Home Equity: What It Is, How To Calculate, & How To Use It
Nearly Half of U.S. Mortgaged Homes Are Considered ‘Equity-Rich’ According to Report
CoreLogic’s Latest “Homeowner Equity Insights” Report
Connect with Molly:
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CoreLogic
Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-176
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