Home prices hit record highs in 60% of U.S. markets in June, pushing home equity levels back to within 3% of last year’s peaks. According to CNBC, that amounts to roughly $200,000 in equity per homeowner. While the majority of homeowners are benefiting from rising prices boosting tappable equity, just 344,000 homeowners with negative equity currently owe more on their homes than their properties are worth.
Home prices were up 0.8% year-over-year in June, a stronger annual growth rate than in May, and while those skyrocketing housing costs are hurting prospective buyers, they’re creating an avenue for current homeowners to build equity wealth.
That home price growth has made homeowners wealthier again. Home equity levels are now back to within 3% of last year’s peaks.
Total equity hit over $16 trillion with tappable equity, which is the amount most lenders will allow you to take out while still leaving 20% equity in the home, rising to $10.5 trillion, just 4% off its 2022 peak. Per homeowner, that is roughly $200,000 in cash sitting in the house, ready for the taking.
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