Equity is on the Rebound

While it has not received a lot of publicity, Equity is, in fact, on the rebound. With all the grim news regarding foreclosures it is surprising that positive news would be ignored.

The Federal Reserve’s latest statistical report on the nation’s finances found that homeowners’ net equity holding had increased by a total of 5.9 trillion during the first quarter of 2009 and $7 trillion during the second quarter of 2010.

This 17.1 percent increase in 15 months means that housing value is going up, even if only modestly. One reason happens to be the real estate market. Home price appreciation has helped to push up homeowner equity holdings.

What does this mean for homeowners? This is a positive sign in the housing market and an indication that home values nationwide are rising and that household debts are decreasing.

As custom home builders, we take a great interest in the home real estate sector and are happy that the latest numbers show that the equity crash is over and that we are slowly rebuilding- with of course, much healthier practices.