Charlotte Area Homeowners “Equity-Rich” In 2018
Charlotte area homeowners became more “equity rich” than ever in 2018. Part of this has to do with home value appreciation and part due to the fact that fewer home owners are tapping into their equity. Regardless of when you purchased your Charlotte home, more than likely you’re probably in a positive home equity position.
More Homes Gained Equity In 2018
One of the primary advantages of investing in the purchase of a home is to grow your personal wealth through home value appreciation — in other words increasing the equity in your home. Equity is the difference between the fair market value of your property and the amount you owe your lender. Building equity is a great way to build passive wealth long term. Unless you are living somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying your own home provides you with a form of ‘forced savings’ that contributes to growth in personal wealth.
A recent study by ATTOM Data Solutions showed that as of the third quarter 2018, more homes were considered equity rich than ever before. To be considered “equity rich,” the combined estimated amount of loans secured by a property is 50% or less of a property’s estimated market value. In this regard:
- Approximately 14.5 million properties in the United States were home equity rich. That represents an increase of over 433,000 homes gaining equity from this time last year.
- These 14.5 million “equity rich” homes account for over 25% of all properties with a mortgage.
Clearly, one of the reasons that Charlotte area homes grew equity in 2018 stems from the increase in property values/prices. Another reason is that many homeowners are not cashing in on their equity but leaving it intact.
% Of Equity-Rich Households In Charlotte Region As Of 2018 Third Quarter*
- South Charlotte – 28210 Zip Code: 29.*%
- South Charlotte – 28226 Zip Code: 29.9%
- Southwest Charlotte – 28278 Zip Code: 13.4%
- Southwest Charlotte – 28273 Zip Code: 14.7%
- Ballantyne – 28277 Zip Code: 20.2%
- Indian Trail – 28079 Zip Code: 15.8%
- Waxhaw – 28173 Zip Code: 15.9%
- Belmont – 28012 Zip Code: 19.2%
- Monroe – 28110 Zip Code: 19.4%
- Gastonia – 28056 Zip Code: 18.3%
- Gastonia – 28052 Zip Code: 17.2%
- Concord: 18%
- Cornelius: 19.5%
- East Charlotte/Mint Hill – 28227 Zip Code: 23.5%
- Matthews – 28105 Zip Code: 24.3%
- Matthews – 28104 Zip Code: 19.1%
- Pineville: 16.9%
- Fort Mill – 29715 Zip Code: 16.5%
- Fort Mill/Tega Cay – 29708 Zip Code: 15.2%
- Clover: 16.6%
- Lancaster – 29720 Zip Code: 19.3%
- Indian Land – 29707 Zip Code: 16.5%
- York: 19.6%
- Rock Hill: 17.5%*Statistics from ATTOM Data Solutions.
What’s Ahead In 2019 For Home Value Appreciation/Equity Gains
It’s likely that home appreciation will slow in the final months of 2018 and not grow quite as quickly in 2019, but no one is predicting home values to drop to the degree they did during the recent “great recession,” when many homes lost 30-50% of their equity. So equity should continue to grow, albeit a bit more slowly.
Why 2018 Was A Great Year For Home Equity {Video}
As the video below shows, regardless of when you purchased your home, more than likely you’re probably in a positive home equity position.
Wondering How Much Equity Your Charlotte Area Home Has?
… The Right Broker Makes All The Difference!
This Charlotte, North Carolina real estate update for the Charlotte region is brought to you by Nina Hollander and Carolinas Realty Partners with Coldwell Banker Residential Brokerage, your Charlotte metro area residential real estate experts. We’ve been opening doors for home buyers and sellers throughout the Charlotte region for 20+ years.
If you’re considering selling or purchasing a home in the Charlotte area, I’d love an opportunity to earn your business, exceed your expectations, and to show you how:
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