Home Equity is Back!

"Home equity is back!" That's what Kenneth R. Harney wrote in The Washington Post last week. "And it’s growing fast: According to the latest data from the Federal Reserve, Americans’ net equity holdings in their houses jumped by nearly half a trillion dollars during the last three months of 2012 and have increased by $1.7 trillion since the spring of 2011."

Harney points out what this means to the individual homeowner:

Depending on where you own your home, it might mean that finally — after years of struggling with an underwater mortgage — the market value of your property has risen enough to put you into positive-equity territory. Or closer to break-even equity than you assumed. Zillow Real Estate Research estimates that nearly 2 million American owners exited negative-equity status during 2012 alone.

He also points out that it also could mean that for those who would like to sell their house they are in a much better position to do so.  "And if your home is located in one of dozens of local markets that are experiencing severe shortages of listings for sale combined with strong demand from buyers, this spring could bring you a higher price than at any time in the past seven years."