Hamlet Said “A Man’s House is his castle. Why don’t you own a castle? You can just as well as not.”
- In 2020, the number of equity borrowers could take out of their homes, or so-called tappable home equity hit a record $7.3 trillion.
- And yet, getting that cash isn’t always easy
One of the bright spots of the 2020 Boston real estate market is the growth in equity that Boston condo owners are experiencing here and across the country. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.
“CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year.” (See map below):
This means that “In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year.”
That’s a huge win for downtown Boston condo owners, especially for those looking to sell their Boston high rise condos and make a move this summer. Having equity to re-invest in your next Seaport condo is a major force that can make moving a reality, especially while buyers are expressing such a high demand for homes to purchase.
Frank Martell, President, and CEO of CoreLogic address the potential long-term outlook and how homeowners will likely fare much more positively through the current recession than many did during the last one:
“Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today’s housing environment has low vacancy and delinquency rates and a large home equity cushion.”
Now is a great time to consider leveraging your equity and making a move to that Seaport District condo you dreamed about, especially while interest rates are at a historic low. Let’s connect to explore your equity position and make your next move a reality.