US home equity hits record $27.8 trillion
Total US home equity hit a record high of $27.8 trillion, according to the Federal Reserve.
The Fed reported that home equity rose nearly 20% in the first quarter of the year amid a booming real estate market, the Wall Street Journal reported.
The record home equity figures come as housing market prices soar. Soaring prices coupled with high rates of inflation have made it harder for people to use their capital, but on the other hand, it has bolstered the finances of Americans who already own homes, the newspaper added.
Recent research from Freddie Mac, the federal housing mortgage company, indicated that low mortgage rates, limited supply and increased migration south and west as people seek more space have all contributed to higher home prices.
Especially in places like Washington, DC, Hawaii, and Idaho, home values are currently up more than 100% for every location from numbers 20 years ago.
Nationally, the typical value of a home in the United States is currently $344,141, according to the Zillow Home Value Index, which considers an average home price level.
This figure marks an increase of more than 20% in the past year alone.
But despite those high prices, people have flocked to buy homes, especially amid the pandemic.
“I will say that in times of uncertainty, whether it’s economic uncertainty or life uncertainty, this idea of real estate or home, I think it’s really compelling for people. folks,” Lisa Sturtevant, housing market analyst and consultant for Bright MLS, a DC SEO service, told The Washington Post.