Houston Homes Among Best in Equity Nationwide
The Houston Business Journal reports that Houston is among the top 10 U.S. cities with the lowest number of underwater homes. According to data from CoreLogic, 98.3% of Houston homes are showing positive equity in 2016. Overall, Texas scores well when it comes to home equity, with 98.5% of Austin and Forth Worth homes showing positive equity.
For those unfamiliar with the term, “equity” refers to home value that is free and clear of any liens standing against it. In other words, equity is the difference between what your home is worth on the market, and any loans and lien balances you would need to pay off at closing.
During the Great Recession when home values plunged around the country, many homeowners fell into negative equity. This is the position of owing more debt on your home than what it’s worth on the market. Fortunately for Houston homeowners, our market has proven very resilient against downturns. During 2010, 85.6% of Houston homes had positive equity – an amazing ratio, considering the scope of economic upheaval at the time.
Houston continues to rank above most of the nation when it comes to home equity. Nationwide, 92% of homeowners have positive equity, compared to Houston’s 98.3%. Altogether, Houston ranks #6 among the 176 cities that CoreLogic tracks for positive equity.
Houston home buyers can reasonably expect to benefit by the historic equity trends we enjoy in our market. For example, when buying a home is compared to renting, Houston buyers only need to live in their home for about 17 months to recoup their purchase expenses! Houston ranks #5 nationally in terms of the shortest break-even timelines for owning vs. renting. In another analysis, Houston ranks among the best U.S. cities for home ownership on the basis of affordability and energy costs.
Looking for more information about buying Houston real estate? We’re here to help you! Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home purchase! Contact us today for your personal real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079