Housing Market’s Strength Lies in Equity

By: Gem Home Loans

Everybody knows about the economic damage the coronavirus pandemic has caused. But while the virus disrupted the overall economy, the housing market has showed remarkable resiliency. In fact, by most measures, it’s outperforming year-before levels. One of those measures is homeowner equity. Homeowners gain equity when their home is worth more than what they owe on it.

And, in 2020, it’s been increasing. In fact, ATTOM Data Solutions’ third-quarter Home Equity & Underwater Report found that 16.7 million properties could be considered equity rich. That’s about 28 percent of all the mortgaged homes in the country – up from 26.7 percent at the same time in 2019. And the improvement was widespread. Among the 50 states, 49 showed quarterly increases in the number of equity-rich homes. Todd Teta, ATTOM’s chief product officer, says it’s a sign of the housing market’s strength.

“Homeowner equity in the third quarter added another pebble to the pile of markers showing that the U.S. housing market continues to defy the broad downturn in the economy this year,” Teta said. “Home prices keep rising, boosting the balance sheets of homeowners throughout most of the country.” (source)

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