Economists' Outlook

Housing stats and analysis from NAR's research experts.

Housing Wealth Recovery

  1. In just a short two years, the nation’s property owners have accumulated nearly $4 trillion in housing wealth.  During the harsh downturn, $7 trillion was wiped out.  As a result, the housing market is still in recovery mode and not an expansion mode.  There are still underwater homeowners, but those who bought from 2009 and onwards are enjoying positive net worth.
  2. While property values have been rising, the overall mortgage debt outstanding has been falling.  At the end of 2013, there was $9.3 trillion in mortgage debt.  Several years ago, the total mortgage debt was $10.5 trillion.
  3. Higher real estate values combined with falling mortgage debt has raised the overall equity portion in real estate to 52 percent of the total real estate value, a substantial increase from the 36 percent of a few years ago.
  4. Given that the total number of renters has been rising while that of homeowners has not over these periods, one may say that the housing wealth train has already left the station without young first-time homebuyers.  Has Washington’s fiddling over new federal mortgage rules, which has confused many small lenders, and major lawsuits against big banks to some degree unwittingly backfired?

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.

Advertisement

Comment Policy

The opinions expressed in reader comments sections on this website are those of the reader and not NAR or REALTOR® Magazine.

About Economists' Outlook

Visit this blog daily to see what NAR experts are saying about the economy, the housing market, and other factors that will impact your business.

Housing Minute

Housing Minute is a monthly video series highlighting the latest housing data from the National Association of REALTORS® in a minute or less.