Boise homeowners lead nation in home equity gains

by | Mar 3, 2022 | Blog

With each passing day, homeowners in Boise are building big amounts of wealth through their home equity.

Home equity is the value of their property minus the balance of the homeowner’s debt on the property. Nationally, home prices have continued to increase at a remarkable pace, adding to the value of properties en masse, including steep increases in areas in Treasure Valley and Idaho.

In a survey of 106 metro regions across the country with populations over half a million, only one location performed higher that Boise on the equity-rich scale, according to real estate data.

In the closing quarter of 2021, nearly 70% of properties in Boise were considered to be equity rich. According to ATTOM, equity rich is when a region’s estimated loan balances is no larger than 50% of the surveyed home’s market value.

For example, the media price of a single-family home in Boise was about $430,500 at the end of 2021. In 2016, that number was close to $200,000. There’s been a 53% jump in just two years.

Mostly, home equity is driven by increasing home prices, which continue to widen the gap between how much homes are worth versus how much homeowners still owe on their mortgages.

In 2019, Boise ranked 14th on the equity-rich survey. This past year, Valley County and McCall ranked second nationally with nearly 80% of properties in the equity-rich category.

In ZIP codes 83712, 83702 and 88703, at least 75% of the homes were considered equity rich. Other high-performing ZIP codes of at least 50% include 88644, 83687 and 83651.

Strong job performance and growth in Boise are pushing the rate up. With a healthy workforce, more people can afford the costs of homeownership and enter the competitive real estate market.

Altogether, Boise’s equity gains are outperforming the national pace. Over the span of 10 years, Boise homeowners have gained about $378,000 in equity. Nationally, that number is closer to $225,000. The data assumed properties would be sold at current projected prices determined by Realtors.

Boise homeowners who purchased property about five years ago have earned about $288,000 in equity.

Tapping into your home’s equity is a direct path to access instant cash at low financing costs. Homeowners can leverage their home’s equity to apply for a low-interest loan, which can be paid off over a long period of time.

Funds from a home equity loan can go toward a major purchase or fund a home renovation project. Borrowers can also use the affordable loans to consolidate debt, pay for college, start a business or fund other major expenditures.

If you are interested in information about a home loan to purchase real estate in the Boise area, contact us today!

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