Growth In Homeowner Equity

Within the current market, several trends are going on that give us confidence that more and more homeowners will be putting their homes on the market, promising a robust spring home selling season.

The most positive sign is the growth in homeowner equity the past few years, driven by the rise in home prices as well as the boom in refinancing, which has enabled many homeowners to pay down their mortgages faster, further increasing their equity.

Consumer net worth has jumped $14 trillion in the past two years, according to the Federal Reserve.
Home equity has risen by $3.5 trillion.

Only about 13% of U.S. homeowners with a mortgage remain under water, down from 22% last year and 33% at the market’s bottom.

According to Zillow, nearly 5 million mortgaged homeowners have graduated to a positive equity position since the beginning of 2012.

Article adapted from Matthew Jablonski, Mortgage Loan Originator, Mortgage Masters