We’ve mentioned the Tampa Bay housing crisis before. There’s a lot of talk centered around home prices on the rise lately due to the lack of single-family homes available on the market today.
Although rising prices is a scary concept, there is a silver lining for homeowners. According to CoreLogic’s Homeowner Equity Report, largely due to the home value increase, the average American household gained over $14,000 in equity in the last year.
In CoreLogic’s map below, you can see the average equity gained per mortgaged home in the first quarter of this year. As you can see, Florida is the in $14,000 range. Way to go Florida homeowners!
Don’t worry about the market repeating itself and heading straight for the gutter like it did in 2006/2007, however. These changes are a good thing and it is important to remember that trends are showing that homeowners are not investing in depreciating assets today and are instead capitalizing their new-found equity.
Homeowners are seeing many benefits from this equity increase such as extra finances to invest in career opportunities, pay off mortgages, or even put children through college.