Homeowners in America got two trillion
dollars richer and those with mortgages
saw their equity jump by 20 per cent
thanks to soaring house prices amid
pandemic housing boom as millions
fled to the suburbs
Daily Mail (UK),
by
Staff
Original Article
Posted By: Ribicon,
6/10/2021 2:16:11 PM
American homeowners collectively have added a staggering $2trillion to their equity in the first few months of 2021, as home prices continued to climb.
People with mortgages saw their equity skyrocket nearly 20 per cent in the first quarter of the year, according to a new report from CoreLogic, the California-based property data provider. The average homeowner gained more than $33,000 in equity, which represents the largest increase in at least a decade. The record-breaking equity gain has been attributed to rising home prices caused by a strong recovery from the pandemic, ultra-low interest rates, massive fiscal support and continued demand
Reply 1 - Posted by:
TexaTucky 6/10/2021 2:33:35 PM (No. 811846)
Enter Delbert Downer, who is not selling his house right now:
Growth in equity that comes from growth in property value = growth in property taxes.
10 people like this.
Reply 2 - Posted by:
Proud Texan 6/10/2021 2:41:47 PM (No. 811855)
They might have gained equity, but didn't get richer.Their property taxes just skyrocketed, is all.
11 people like this.
...ultra-low interest rates...
The real key. There hasn't been a better time to "rent" money in history. We were told that the 3.25% refi last year would be the last mortgage we'd ever need. Did it all over again last month for 2-and-a-quarter.
2 people like this.
Reply 4 - Posted by:
mc squared 6/10/2021 2:56:44 PM (No. 811866)
Bidenflation hides the value of everything. Sure my house increased but the $$$ is worth less.
8 people like this.
Reply 5 - Posted by:
czechlist 6/10/2021 2:58:34 PM (No. 811867)
Equity only comes into play when you sell. Then what? You still have yo live somewhere so you downsize to where? Meanwhile you pay higher taxes and utility and maintenance costs become inflated. Your kids may profit if bidet doesn't lower the inheritance tax.
11 people like this.
Reply 6 - Posted by:
Ribicon 6/10/2021 3:05:51 PM (No. 811873)
Along with property tax increases, homeowners insurance premiums, which are already wildly high in some places. will necessarily skyrocket. "You won't pay a penny more in taxes unless you're earning a million dollars a year, LOL," to paraphrase the dotard Chinese puppet the Marxists installed.
6 people like this.
Reply 7 - Posted by:
cartcart 6/10/2021 3:23:35 PM (No. 811885)
Our home value has doubled. It can also drop by half if there is another recessionary event or cycle. We are thinking that we buy a home to live in, not refinance and scrape cash to pay off the credit cards. We remodeled with cash. We hate debt. We also hate taxes. And beets. We hate beets.
14 people like this.
Reply 8 - Posted by:
Kafka2 6/10/2021 3:26:15 PM (No. 811887)
Most of this illusion. Some of this is a momentary spike due to lack of construction during the Covid-19 pandemic lock down. Supply did not keep up with demand. The rest is due to inflation which is growing and will continue to grow into the foreseeable future due to outrageous high and irresponsible government spending.
In 10 years you may be able to sell your house for 5 times what you paid for it, but everything will be five time more expensive. The change in equity, adjusted for inflation, will be zero! Yet you will be taxed for 80% of the selling price. The capital gain is an illusion because of inflation.
9 people like this.
Reply 9 - Posted by:
zephyrgirl 6/10/2021 4:19:20 PM (No. 811925)
Lots of these people will pull out their equity to go on vacation, buy a boat or RV, and otherwise party down. Then just like in the last downturn, we'll be treated to the same sob stories about people who've "owned" their homes for 30 years and are being foreclosed and kicked out by some mean banker because they can't make the mortgage payments. Irresponsible people can't stand the idea of having "all that money" and not being able to spend it.
4 people like this.
Reply 10 - Posted by:
chance_232 6/10/2021 6:17:11 PM (No. 812015)
I'm predicting that all of that equity will vanish when the evictions and foreclosures start this fall. Then there will be the interest rate hikes.....................
This equity jump isnt universal. In NYC for example, prices are dropping because people are moving out in droves.
3 people like this.
Reply 11 - Posted by:
Heil Liberals 6/10/2021 6:41:56 PM (No. 812036)
Nope. The economy has been flooded with over three trillion dollars of inflationary fantasy money, the fed keeps interest rates low, and there’s “money” galore. It’s another house of cards.
3 people like this.
Reply 12 - Posted by:
Venturer 6/10/2021 8:39:13 PM (No. 812100)
People are buying old homes because they cannot afford the price of lumber to build a new one.
1 person likes this.
In the last few years my homeowner's insurance has tripled along with my property value. If you sell, you can't find another house or apartment.
FL is graced with not only more New Yorkers but now Venezuelans and islanders from the Caribbean.
0 people like this.
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People are moving into hard assets because the dollar is collapsing, thanks to Janet and Joe and their free-spending junta. Of course, the Democrat socialists are OK with first-time buyers being priced out of homes; they can live in Soviet-style block housing or in "tiny house" garden sheds. And of course the IRS loves the skyrocketing housing prices because they get a greater cut of the proceeds when the asset is sold. Win/win.