4. Use of Home Equity The next chart shows the difference in how people are accessing the equity in their homes today as compared to the period leading up to the housing crash. Back then, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance high- end lifestyles. Today, consumers are treating the equity in their homes much more responsibly.
Total Home Equity Cashed Out by Refinance in Billions
5. Home Equity Earned Today, 58.7% of homes across the country have at least 60% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to foreclose on their homes.
of all homes in America have at least 60% equity
Americans are sitting on tremendous equity 42% of all homes are owned ‘free and clear’ $177,000 the average equity of mortgaged homes John Burns Consulting CoreLogic
Bottom Line If you’re considering buying a home this year, there’s no need to fear the market. We’re not in a housing crisis, and this is nothing like 2008.
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