Home equity inside the U.S continues to rise; this equity is largely an untapped resource for retirees.
According to reports in June of 2018 from CoreLogic, this trend is persistent in showing year-over-year gain for American homeowners. The National Reverse Mortgage Lenders Association (NRMLA) reports a slight increase in home equity for seniors 62 and older.
Western states such as California, Washington, and Hawaii are all experiencing favorable home equity growth.
Executive vice president, Steve Irwin, of NRMLA states, “The numbers tell a reassuring story about housing wealth in an era when large numbers of retirees and near-retirees fear running out of money before the end of their lives,...Homeowners 62 and older can responsibly tap some of the home equity they’ve built over time to stabilize wobbly retirement stools and support their longevity.”
Chief economist, Frank Nothaft, of CoreLogic echos, “Home-price growth has accelerated in recent months, helping to build home-equity wealth and lift underwater homeowners back into positive equity — the primary driver of home equity wealth creation.”
These reports show promise for homeowners 62 and older, who face challenges and need creative, viable solutions to allow them to have a comfortable retirement.