What Is the Average Equity in U.S. Homes?
Unlocking the Truth: How Much Equity Does the Average American Homeowner Really Have?
Hey there, fellow homeowners! Do you know how much equity you have in your homes? Well, it turns out that the average amount of home equity in the United States is at an all-time high! That's right, according to recent data from Black Knight, the average mortgage holder now owns a whopping $185,000 worth of accessible home equity.
That's an incredible increase of almost $48,000 in just 2021 alone! And get this: it's the fastest rate of growth in home equity that the United States has ever seen. That's more than double the rate of growth from the previous year, which was already a record high.
So, what's driving this surge in home equity? It's all thanks to the rapid increase in house valuations. In fact, housing valuations rose by 17% in the 12 months leading up to September 2021, which is a fantastic recovery from the COVID-19 pandemic slump.
However, it's important to note that these gains in equity weren't evenly distributed across the country. The West Coast and Mountain states saw the most significant increase in house prices, with California borrowers seeing an average annual increase of $119,000. Meanwhile, North Dakota only saw an average increase of $15,000.
With home equity at a record high, many homeowners are now looking for ways to access the money they've invested in their homes. Some are choosing to sell their homes, while others are exploring financial products that can unlock equity, such as cash-out refinancing, home equity lines of credit (HELOCs), and reverse mortgages.
If you're a homeowner, it's important to keep in mind that you should aim to keep at least 20% of your equity in your home. This is a requirement to access a range of refinancing options. So, be sure to check your home equity and make informed decisions about your finances.
The rise in home equity in the United States is exciting news for homeowners. If you're lucky enough to own a home, it's worth checking your equity and exploring your options for unlocking it.
Who knows? You might be sitting on a gold mine!