Homeowners in Northern Colorado have a bunch of equity in their homes.This fact was reported by our Chief Economist Matthew Gardner at our annual Real Estate Market Forecast event. The term ‘equity rich’ is defined as someone who has at least 50% equity in their home. For example, if someone owns a home worth $500,000 and their mortgage balance is less than $250,000, they are ‘equity rich.’ A whopping 57% of Larimer County homeowners and 46% of Weld County homeowners are equity rich. To put that in perspective, in 2015 there were roughly 20% of Northern Colorado homeowners who had this much equity in their homes. This level of equity is one of many reasons Northern Colorado is protected from any sort of severe market downturn resulting from an excessive amount of distressed properties hitting the market.
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Fun Facts • February 3, 2023
by Natalie Parsons
Fun Facts Equity Cushion You may remember the term “Home ATM” from the mid 2000’s. This term stemmed from the abundance of homeowners who pulled significant amounts of equity from their homes in the form of Home Equity Loans and Lines of Credit. Home values dropping in 2008, 2009 and 2010 caused many homeowners to be ‘underwater’ meaning that, […]
Fun Facts A Little Perspective Those of us in the real estate industry agree that the years 2020 to 2022 were anomalies. During that time there were unique factors which drove abnormally high real estate activity. The number of transactions that occurred in those three years were at levels never seen before.It has become customary to compare the market in 2023 […]
Other Rate Prediction Our Chief Economist, Matthew Gardner predicts that interest rates will hit 5.4% by the end of 2023. His prediction is aligned with most expert real estate economists. While rates will continue to bounce up and down as the year goes on, the general trend will be lower rates. This prediction is mainly based on the […]