Home equity in the US has reached an all-time high furthering the fear of a housing bubble. Home equity is defined as the value of real estate minus mortgage debt. We discuss both homes owned by homeowners with mortgages as well as investor owned homes and occupied homes that are free and clear.
There has been fear that this rising home prices has created a housing bubble in the real estate market and it could cause the housing market to crash. We talk about how this is not likely to happen in the short-term and how home equity is giving the real estate market in the US a solid base of support to protect it from a downturn in the future.
00:00 Home Equity All Time High
01:00 How Much Mortage debt exists
02:29 Home equity compared to loan amounts
07:20 Inflation being driven by excess equity
08:50 Home equity vs delinquent mortgages
11:22 History of Home Values and Equity
14:20 history of total mortgage debt
20:20 Historical trend-line of home prices
22:30 why the housing market won’t likely crash soon
25:00 home price predictions
28:30 home affordability
30:20 Housing market outlook