Rising Equity A Sign Of Healthy Housing Market
When the pandemic began in early 2020, there were fears that it would hurt the housing market and home values. However, those fears were quickly set aside as home buyers returned and prices rose.
In short, the housing market survived relatively unscathed as the coronavirus caused volatility and uncertainty nearly everywhere else. Now, more than a year later, a new report shows that it continues to thrive.
In fact, according to ATTOM Data Solutions' U.S. Home Equity & Underwater Report, the number of equity-rich properties – those whose loans are no more than 50 percent of the property's estimated value – continues to rise, while the number of seriously underwater homes is falling.
Todd Teta, ATTOM's chief product officer, says the pandemic has actually helped homeowners. “Instead of the virus pandemic harming homeowners, it's helped create conditions that have boosted the balance sheets of households all across the country,” Teta said.