The luxury housing market right now is booming and the homeowners in those areas are seeing major equity gains. The Home Price Index from CoreLogic has reported that homes have increased by 17.7% from last October to this September. Mortgages have also increased by 31% over this time period as well and more gains are expected. This comes at a time when many people are struggling due to the coronavirus as well, which almost makes it a contradiction in terms of the economy.
- The Home Price index reported that the price of homes for the 12 month period from October to September rose by 17.7%.
- More gains are expected in 2022 as long as the price of homes stays steady and doesn’t decrease.
- Major equity gains are happening due to the rising prices of single family homes and the homes in high end markets are benefiting most.
“As home values steadily rose, U.S. homeowners with mortgages saw a 31.1% year-over-year increase in home equity during the third quarter of 2021.”