Do Arizona Homeowners Have Equity in 2020?
Rising home prices in Arizona have been in the news a lot lately, and much of the focus is on whether Arizona home prices are accelerating too quickly and how sustainable the growth in prices really can be. One of the often-overlooked benefits of rising prices, however, is the impact they have on a homeowner’s equity position.
Home equity is easily defined as the difference between a home's fair market value and the outstanding balance of all liens on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value increases.
Popular choices for most homeowner's with equity is to move to a retirement home, If you have a 5 bedroom home and all the kids have moved out, your probably looking for a home with less upkeep, one level, and more entertaining area than bedrooms take a look for homes for sale in Sun City Grand. If you have a few kids and you are in a started home, now could be your chance to move into a home with more bedrooms and a pool.
Today, the number of homeowners that currently have significant equity in their homes is growing. According to the Census Bureau, 38% of all homes in the country are mortgage-free. In a home equity study, ATTOM Data Solutions revealed that of the 54.5 million homes with a mortgage, 26.7% of them have at least 50% equity. That number has been increasing over the last eight years.
CoreLogic also notes: Looking at the infographic above
“…the average homeowner gained approximately $5,300 in equity during the past year.”
The map above shows a breakdown of the increasing equity gain across the country, painting a clear picture that home equity is growing in nearly every state.
This may be the year to take advantage of your home equity by applying it forward, either as you downsize to a retirement home or as you move up to a new home.