Waypoint Real Estate Group understands the importance of growing equity in your home. Aside from being your “home”, it is after all, an investment. Recovery in the real estate market has allowed many Americans to be on the positive side of equity in their homes. As a result, lenders have seen an increase in the opening of home equity lines of credit.
According to a study from RealtyTrac® reporting on 12 months ending in June of 2014 Home Equity Lines of Credit are up 21 percent since a year earlier. This number is at the highest level since June of 2009 showing a great trend in the market as our economy recovers. What exactly do the increasing number of HELOCs (Home Equity Lines of Credit) mean? Most importantly it means that many homeowners and investors have started to regain some of the equity they lost during the housing crisis. On a more meta-level, it’s a sign that buyers, investors and refinancers are gaining confidence in the strength of the housing recovery process. Additional good news indicates that the number of homeowners with severe negative equity has decreased from 29% in 2012 to 17% this year.
Major metro areas have been affected in big ways. The areas with the biggest year-over-increase of HELOC originations include Riverside-San Bernardino in California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase) and Phoenix (60.1% increase). While all of this may seem well and miraculous, we should also put things in perspective recalling that U.S. HELOC originations are still down 76% overall from their peaks in 2005-2006.
If you are wondering how the market recover has improved the equity in your home, give us a call for a free home valuation. Waypoint Real Estate Group is at the ready to assist you with your next home search.