Currently Reading

Nearly Half of All U.S. Homes Were Equity-Rich in the First Quarter of 2022

Advertisement
Financials

Nearly Half of All U.S. Homes Were Equity-Rich in the First Quarter of 2022

Equity-rich homeowners are cashing out and leaving pricey markets to buy new homes in low-cost states


May 20, 2022
Home model on stack of money
Image: Stock.adobe.com

A red-hot housing market is pushing home values to new highs, and a subsequent increase in equity wealth is motivating some homeowners to relocate, according to The New York Times. In the first quarter of 2022, 44.9% of all homes in the U.S. were considered “equity-rich,” meaning that the loan balances secured by those properties were no more than 50% of their estimated market values. 

While many equity-rich homeowners are staying in place rather than selling their homes and entering into an unpredictable buying frenzy, others are opting to cash out and move to more affordable markets. Over a third of all U.S. home sales in the fourth quarter of 2021 were cash purchases, an unprecedentedly high share in a particularly pricey market.

“What we believe is happening is that people are leaving high-cost, high-tax states, grabbing the equity and buying a house in a low-cost state,” Mr. [Rick] Sharga said, adding that more than a third of U.S. home sales in the fourth quarter of 2021 were cash purchases, higher than usual.

But as mortgage rates creep up, some homeowners who already have low rates are staying put. “It’s being driven by boomers wanting to age in place,” he said, with more owners investing in home repairs rather than selling. “That inventory is not coming back to market.”

Read more

Related Stories

Affordability

As the Housing Market Loses Steam, a Growing Number of Sellers Are Dropping Their Asking Prices

The Fed's most recent mortgage rate hike is putting a damper on home sales, and in order to attract remaining buyers, sellers are increasingly slashing their asking prices

Affordability

Consumer Confidence Dropped to 16-Month Low in June

Fast-rising inflation is putted increased financial pressure on Americans who are struggling to afford everything from gas to monthly mortgage payments

Financials

What's Driving the Recent Spike in Mortgage Rates?

The housing market appears to be cooling down in the wake of surging mortgage rates, but the Fed isn't backing off anytime soon

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.