What is Home Equity?
Equity is the market value of your home minus the amount you still owe on your mortgage loan.
What Does It Mean To Be Equity Rich?
To be equity rich means the debt on the property is 50% or less of the home’s current market value. There’s two main ways to become equity rich:
- You pay down the principal of your loan
- An increase in value over time occurs and you arrive at that ratio without shelling out more cash per month.
1 in 3 Homes Nationwide Are Currently “Equity Rich”
While this is great for current home owners in 2021 it’s not so great for those that are still renting or leasing their home.
Utah Led The Biggest Nationwide Increase
Utah’s overall equity increases saw an average of 20-21% increases. Other states with the biggest rise in equity included: Nevada, Idaho, Colorado and North Carolina. With the pandemic’s influence and other factors causing more people to move to the western region or more rural parts of the United States.
Utah’s Top Equity Rich Zip Codes
2021 Q2 to Q3 biggest increase were: Price, St. George, Washington and Park City, Utah and the biggest equity rich position in the Utah Real Estate Market. Again, high demand, low supply equals equity rising faster than usual.