It has never been a better time to be a homeowner. And the 2022 U.S. Home Equity & Underwater Report from the real estate data provider, Attom has shown that rising home prices have made the Austin housing market one of the most equity-rich markets in the nation. As we near halfway through what has been an unprecedented year in real estate, news of an increase in equity-rich homeowners is an excellent sign for homeowners and potential sellers.
Attom’s Findings
The report shows that, in Austin, 73.8% of homeowners were considered equity-rich in Q1, up from 41.9% during the same quarter in 2021. Attom also analyzed over 8,000 U.S. zip codes in this report, revealing that 37% were equity-rich and eight of the top ten zip codes were in Austin.
So, how did rising prices contribute to this trend? Todd Teta, Attom’s Chief Product Officer, made these remarks in regards to their report: “As home prices kept rising, so did the equity built up in residential properties, to the point where close to half of all mortgage payers around the country found themselves in equity-rich territory,” meaning that these homeowners owe no more than half of their property’s current market value.
Rick Sharga, Attom’s executive vice president of market intelligence, commented on this report as well, noting the benefits and challenges these numbers reveal about the housing market. “Homeowners continue to benefit from rising home prices…Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008. But these higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market.”
June Housing Market
While rising prices make it more challenging to enter the market as a first-time buyer, news of the current housing market shows signs of cooling. The June Housing Market Report from the Austin Board of REALTORS® has shown a dip in home sales and an overall slow in the increase of residential home prices for the area. Surrounding areas have also experienced this market deceleration, indicating that buyers should still hold out hope for more footing in the coming housing market.
If you are a current homeowner, curious if you fall into this equity-rich category, or are in the market for that perfect home, contact me, and I’ll give you the rundown on why Austin is the best place to buy!
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