It’s been a long time since homeowners have been in as strong of a financial position as they are today. The combination of increasing equity and rising home prices has led to a resurgence in homeowner strength. In fact, according to the latest report from Black Knight Financial Services, homeowners are now more financially fit than they have been in over 34 years!
There are a few key reasons for this newfound financial strength. First, homeowners have been much more cautious about tapping into their equity since the housing market crash. In the years following the crash, many homeowners were “underwater” on their mortgages, owing more than their home was worth. As a result, they were reluctant to take out home equity loans or lines of credit (HELOCs).
But now that home prices have recovered and even surpassed pre-crash levels in many markets, homeowners are in a much better position. They have significant equity built up in their homes, and as a result, they are able to tap into that equity if needed.
Second, rising home prices have also contributed to the financial strength of homeowners. As home values go up, so does the amount of equity that homeowners have in their homes. And as we’ve seen over the last few years, home prices have been on the rise in many markets across the country.
This is good news for homeowners, as it means they are able to build more equity in their homes and have more financial options available to them. It’s yet another reason why owning a home makes sense – not only from a personal standpoint, but also from a financial one.
If you’re thinking about buying a home or refinancing your existing mortgage, now is a great time to do so. Homeowners today are in a stronger position than they have been in many years, and that’s good news for the housing market as a whole.