Home prices are soaring. Bidding wars. Rising interest rates.
Those are the negatives we are been hearing over and over again. But today, let’s talk about the good news in real estate.
Over 45% of homeowners are considered “equity rich”. This means the difference between what their home is valued at and the current mortgage on their property. The term “equity rich” is when they meet the 50% threshold on those numbers.
That is 13% more than homeowners just last year. Although home prices are soaring, and will continue on that path for the forseeable future, people who buy homes today are walking into almost immediate equity depending on where they buy.
“Homeowners continue to benefit from rising home prices,” Rick Sharga, executive vice president of market intelligence for ATTOM, said in a statement. “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”
Across the nation, home prices rose 2% over the last year. That is a huge number when you look at different housing markets. But in Orange County, home prices rose by 22% and the average priced home in this market is at $1,000,000.
The concern here are the first time home buyers. They are really the ones struggling in this market. We are familiar with many creative ways to get into real estate. Reach out to us to think outside the box and get you into a home to start building equity.