Fortunately for our economy, homeowners aren’t still using their equity as their own personal ATM.
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Are people still using the equity in their homes as their own personal ATM?Back in 2006, the total amount of equity people were taking out of their home and using as a cash advance was $326 billion. Nowadays, though, the numbers show that people are more careful with how much equity they take out of their home and what they use that equity for.
This trend shows how much better our economy has gotten and why we won’t see a repeat of the 2007/2008 market crash.
Nationally, 48% of all homes have replenished 50% of their equity, and we currently only have about $70 billion that’s being used as cash refinancing. That’s a huge improvement—not only compared to 2006, but also compared to 2007 when the total was $240 billion. Instead of purchasing RVs and paying for vacations, people are focusing on making home improvements. This trend shows how much better our economy has gotten and why we won’t see a repeat of the 2007/2008 market crash. If you have any more questions about the state of our current market or you have any real estate needs I can help you with, don’t hesitate to reach out to me. I look forward to speaking to you.
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