Selling Your House Guide from Monica Mangra

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

Then…

Now…

Year

Dollars

Year

Dollars

2005

$263B

2017

$71B

2006

$321B

2018

$87B

2007

$240B

2019

$89B

Total

$824B

Total

$247B

Freddie Mac

5. Home Equity Today 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 walk away from their homes.

58.7%

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 selling your house to make a move this year, there’s no need to fear the market. We’re not in a housing crisis, and this is nothing like 2008.

5

Made with FlippingBook - Online magazine maker