The Economic Perspective: “Good News for Homeowners”

This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at good news for homeowners.  Mike, people who have owed their homes for a long time remember the scary days of the Great Recession a decade ago, when home values fell and home bankruptcies soared.  Are the scary times gone?

  • If recent data are an indication, then the answer is yes
  • A key statistic for homeowners is their home equity
  • Difference between value of home and what owner owes on the mortgage
  • Last year home equity nationwide rose over $400 billion, or $5000 per owner
  • Total home equity now sits at a record $6.3 trillion
  • But what is amazing, homeowners took out less than 1% of that money
  • Most experts say this is a result of a new frugality among homeowner, especially those who remember the Great Recession
  • Something I actually predicted a decade ago
  • I’m MW

And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.