For the past four and a half years, the median prices of homes in the United States have been increasing year over year. This positive news, coupled with the fact that home owners are making the choice to own their properties longer, has helped more and more home owners become “equity rich”.
The findings from a report released by ATTOM Data Solutions revealed 23.4% of home owners are considered equity rich, meaning they have a loan-to-value of at least 50%. In fact, the number of homeowners with at least 50 percent loan to value ratio increased by 2.6 million from the third quarter of 2015 to the third quarter of 2016.
According to an article written by Kelsey Ramirez, published by HousingWire.com, the amount homeowners who fall into the category of “seriously underwater” is smaller than last year at this time. Specifically, the number of homeowners with a loan-to-value ratio of more than 125 percent decreased by 854,000.
Just as the real estate market varies in markets across the U.S., trends for homeowners’ equity or lack thereof vary based on geographical locations. More equity rich home owners are seen in locations such as San Jose and Los Angeles, as well as Honolulu and Pittsburgh. Conversely, in locations such as Las Vegas, Cleveland, Toledo, and Detroit, there is still a large percentage of home “seriously underwater”.
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Photo Credit: Svilen Milev