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- House Prices Go Up!
“Only 3.9% of US homeowners
have less than 10% equity”
A Borrow Smart Concept
House Prices Go UP!
Black Knight August 2023 Mortgage Monitor Report Highlights:
Home prices are at record highs, both nationally and locally.
The lack of inventory continues to drive up prices.
Annual home price growth rates are increasing, impacting the rate of appreciation.
"We've been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation." Andy Walden, Black Knight VP of Enterprise Research
- The Black Knight Home Price Index (HPI) has reached a new record high. 60% of major markets Have Also Hit Record Highs 0.8% in June up from 0.2% in May. Annual growth rates have jumped back to More than 80% of markets are experiencing higher appreciation.
"Rising home prices have boosted homeowner equity levels as well." Andy Walden
Homeowner equity levels have recovered from their decline in 2022. Mortgage holders have $16T in wealth, and $10.5T of that equity is "tappable" or available for homeowners to borrow against with the average mortgage holder has $199K in available equity.
The average mortgage "In terms of negative equity, or 'underwater borrowers,' it's a nearly nonexistent phenomenon in today's market." Andy Walden
Housing Values Keep Going Up
Only 344K homeowners owe more on their homes than they are worth.
- 70% increase from last year, but significantly lower than pre-pandemic levels.
Only 3.9% of homeowners have less than 10% equity, down from 6.6% in 2019.
Mortgage Advisor Tip - The housing market continues to heat up, with no end in sight to rising prices. There are may ways you can provide value at all levels of the cycle - consider earning your CLA - Certified Liability Advisor and become a true mortgage advisor.