ᗯIᒪᒪ ᔕKYᖇOᑕKETIᑎG ᕼOᗰE EᑫᑌITY ᑕOᗰE ᑕᖇᗩᔕᕼIᑎG ᗪOᗯᑎ TO EᗩᖇTᕼ? 🌎

https://youtu.be/iuGI4NYcxI4

Video Transcript:

American home equity has skyrocketed over the past year. Does this mean we’re heading into a crash?

Despite what you may hear on the news, the answer is, “not likely.”

Remember the job of the news is to stir up emotion and get you to watch more news. It’s not to educate you. They want headlines that capture the attention of viewers. This is in regard to everything they report. But let’s look at what they’re saying in regard to a possible housing crash, and what’s truly happening in the real estate market in regard to sellers.

Hi, I’m Jennifer Prestwich, The Prestwich Group at Madison & Company Properties.

We should expect to see some headlines that show us that we are headed into crash. But Bill McBride from Calculated Risk has stated, “For quarter 1, 2021, the net equity extraction,” or how much money people took out of their homes, “was $41 billion, or 0.8% of disposable personal income, “or DPI. “This is nothing like the amount of equity extraction “during the housing bubble as a percentage of DPI.”

According to CoreLogic’s quarter one of 2021’s American Community Survey, Americans’ equity has gone through the roof.

The average gain in equity of mortgaged homes is $33,400. More good news, is that the current average equity of homeowners for mortgaged homes is $216,000.

Now what about homes that are owned free and clear and have no mortgage at all? Well, this is pretty interesting to me. Did you know that 38.2% of homes in America are owned free and clear, meaning they have no mortgage at all. And over the past year, there’s been over $1.9 trillion worth of equity, with an average of 19.6% increase in equity.

Real estate advisors and experts are anticipating increases in inventory through 2022, but no one is expecting listings to flood the market. Things are still looking pretty good for sellers. And the likelihood of a crash, well, look at the data.

Don’t forget, if you’re thinking of selling your home here in Adams County or Broomfield County, Colorado, that’s my specialty. I’m Jennifer Prestwich. I’m out here living the Denburbs life, and I want to help you do it to. Remember, life is too short not to love where you live!

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