Home prices are still climbing in the majority of regional housing markets, and as a result, the nation’s collective home equity just reached a new high, according to CNBC. Total tappable equity rose to $11 trillion in April, averaging roughly $207,000 per homeowner, but not all borrowers profited equally.
Tappable equity is mostly held by high-credit borrowers with low mortgage rates, creating a fruitful landscape for existing homeowners, but leaving first-time buyers at a disadvantage in a high-priced market. As interest rates continue their upward trajectory, prospective buyers may discover a more equal playing field in the months to come, but active listings still remain 67% below pre-pandemic levels.
“It really is a bifurcated landscape – one that grows ever more challenging for those looking to purchase a home but is simultaneously a boon for those who already own and have seen their housing wealth rise substantially over the last couple of years,” said Ben Graboske, president of Black Knight Data & Analytics. “Depending upon where you stand, this could be the best or worst of all possible markets.”
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