By Jen Wahl | 12News Phoenix
PHOENIX — A new report showed the average homeowner has a historically large amount of equity in their home, coining the term ‘equity rich.’ This is happening as Arizonans looking to buy a home are battling the highest interest rates in more than 20 years.
Greg Hague, 72 Sold CEO, said more Arizonans have a lot of tappable equity in their home. But when it comes to buying, the high interest rates are not giving any relief to prospective homeowners.
A new report from Black Knight, a mortgage and real estate data and software provider, revealed the average mortgage holder has about $200,000 dollars of tappable equity in their homes, making them equity rich.
Hague said he predicts home prices will set new equity records soon in Arizona and nationwide.
“I’m predicting first quarter of next year, new records in tappable home equity,” Hague said.
However, high interest rates are making it tough on Arizonans who want to buy a home. Current rates are in the sevens, leading to a stalemate. Rates are going up so fast homeowners don’t want to sell, even though they might want to, and it’s tougher for buyers to qualify.
The amount of supply dropped faster than demand, so demand still exceeds supply today even with the high interest rates.
