Equity Story: Increased Home Equity in Albuquerque and why you should be a Home Buyer
(Transcript Snippet): “Tego:
I do wanna talk about this equity story?
No, I wanna wanna talk about something else first. We’re just like so heavy into stats and stories. No, no,
No. But, but this ties into this whole idea. Should you be a seller right now? Right, right. I, I think the, the, the point is, okay. Yes. Maybe, you know, you don’t wanna, you know, buy that new home and, you know, have a more expensive home and have a higher mortgage payment. However, you should probably take a look at what kind of home equity you have, because you probably have a, a ton of home equity and you may not even realize it that you can use for, or that next home for that move up home. Right.
So statistics came out this week in the past year. Yes. Which is crazy to say most home owners have increased their equity in their property by $94,000. Wow. So that’s a factor of the mortgage you’re paying. Yep. Right. How much you’re paying and paying down what you owe the property, plus what your home has appreciated in value. So a lot of folks are taking out they’re cashing out on that equity and using that money. So what, what they’re saying is, as long as you keep 40 or 20% equity in your home, you can take out the equity to do other things. We’ve seen a few people buy a house with the equity, from their existing home where they’ve cashed out and left it with 20% equity so that they can do that. But use that cash to buy the next home so that they’re in a better position to, to do a good offer on the house that they really
Want. And, and, you know, the, the, the number that really jumped out at me on those, on that whole capital tappable equity, 9.9 trillion with a T as in Tom, 9.9 trillion in tappable equity nationwide. So that’s basically the difference between what people owe on their home and what they’re worth. And, and that’s a, that’s a lot of money in consumers pro you know, basically that that’s available if they want to use it. So home
Equity, that number I said earlier home equity grew by 42% in United States last year. Wow. That’s, that’s big. And I mean, for the people who are renting, you know, see what do whatever you can to be a home buyer. Right. We know that it’s the best investment out there, and it’s the least volatile. Right.
And, and, you know oh gosh, I can’t think of his name from Santa Fe, that that with is with the urban Institute and does a lot of how housing policy, policy stuff, but Damian, no, no at home oh, home smart at HomeSmart anyway, not smart. You know, he, he talks about this whole lot and it’s that home ownership is affordable housing compared to renting. When you look at the stats, you know, in the, in the data on that, it’s absolutely ownership is, is way more affordable, definitely in the long run, especially generationally than, than it being a renter.
So think about all the renters who missed out on all that appreciation and growth on their, their net worth this past year or two in what home prices have gone up.