{"id":7942,"date":"2023-01-10T11:00:28","date_gmt":"2023-01-10T11:00:28","guid":{"rendered":"https:\/\/thezakariagroup.com\/the-truth-about-negative-home-equity-headlines\/"},"modified":"2023-01-10T11:00:28","modified_gmt":"2023-01-10T11:00:28","slug":"the-truth-about-negative-home-equity-headlines","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/the-truth-about-negative-home-equity-headlines\/","title":{"rendered":"The Truth About Negative Home Equity Headlines"},"content":{"rendered":"
\"The<\/p>\n

Home equity has been a hot topic in real estate news<\/a> lately. And if you\u2019ve been following along, you may have heard there\u2019s a growing number of homeowners with negative equity<\/a>. But don\u2019t let those headlines scare you.<\/strong> In truth, the headlines don\u2019t give you all the information you really need to understand what\u2019s happening and at what scale. Let\u2019s break down one of the big equity stories you may be seeing in the news, and what\u2019s actually taking place. That way, you\u2019ll have the context you need to understand the big picture.<\/p>\n

Headlines Focus on Short-Term Equity Numbers and Fail To Convey the Long-Term View<\/strong><\/h4>\n

One piece of news circulating focuses on the percentage of homes purchased in 2022 that are currently underwater. The term underwater refers to a scenario where the homeowner owes more on the loan than the house is worth. This was a huge issue when the housing market crashed in 2008, but it much less significant today. Media coverage right now is based loosely on a report from Black Knight, Inc. <\/em>The actual report from that source says<\/a> this:<\/p>\n

<\/p>\n

\u201c<\/em>Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater<\/em><\/strong> and nearly 40% have less than 10% equity stakes in their home, . . .\u201d<\/em><\/p><\/blockquote>\n

Let\u2019s unpack that for a moment and provide the bigger picture. The data-bound report from Black Knight<\/em> is talking specifically about homes purchased in 2022, but media headlines don\u2019t always mention that timeframe or provide the surrounding context about how unusual of a year 2022 was for the housing market. In 2022, home price appreciation<\/a> soared, and it reached its max around March-April. Since then, the rate of appreciation has been slowing down. Homeowners who bought their house last year right at the peak or those who paid more than market value in the months that followed are more likely to fall into the category of being marginally <\/strong>underwater. The qualifier marginally is another key piece of the puzzle the media isn\u2019t necessarily including in their coverage. So, what does that mean for those who purchased a home in 2022? It\u2019s important to remember, owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they\u2019re not necessarily providing the full context. Typically speaking, the longer you stay in your home, the more equity<\/a> you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it\u2019s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.<\/p>\n

<\/p>\n

Bottom Line <\/strong><\/h3>\n

As with everything, knowing the context is important. If you have questions about real estate headlines or about how much equity you have in your home, let\u2019s connect.<\/p>\n<\/div>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

Home equity has been a hot topic in real estate news lately. And if you\u2019ve been following along, you may have heard there\u2019s a growing number of homeowners with negative equity. But don\u2019t let those headlines scare you. In truth, the headlines don\u2019t give you all the information you really need to understand what\u2019s happening […]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nThe Truth About Negative Home Equity Headlines - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/the-truth-about-negative-home-equity-headlines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Truth About Negative Home Equity Headlines - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"Home equity has been a hot topic in real estate news lately. 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