If you've been watching the news lately, you've probably heard that inflation is moving in the wrong direction again. While that may sound concerning, it's important to understand what it actually
The True Strength of Homeowners Today!
Dated: September 25 2022
Views: 57
The True Strength of Homeowners Today
The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond 10 trillion dollars over the past year, and many called that a troubling sign when it happened for the first time in history.
Recently Odeta Kushi, Deputy Chief Economist at First American, answered that question when she said:
“U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national "LTV" in Q2 2022 was 29.5%, the lowest since 1983.”
She continued on to say:
“Homeowners had an average of $320,000 in inflation-adjusted equity in their homes in Q2 2022, an all-time high.”
What Is LTV?
The term LTV refers to loan to value ratio. For more context, here’s how the Mortgage Reports defines it:
“Your ‘loan to value ratio’ (LTV) compares the size of your mortgage loan to the value of the home. For example: If your home is worth $200,000, and you have a mortgage for $180,000, your LTV ratio is 90% — because the loan makes up 90% of the total price.
You can also think about LTV in terms of your down payment. If you put 20% down, that means you’re borrowing 80% of the home’s value. So your LTV ratio is 80%.”
Why Is This Important?
This is yet another reason we won’t see the housing market crash. Home equity allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to sell it and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.
Bottom Line
Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense.
Dana M Varricchio
As a lifelong resident of Long Island’s South Shore, Dana possesses an intimate knowledge of the area’s charm and diversity. With over 22 years of real estate expertise, she pairs her deep....
Latest Blog Posts
The Mid-Year Housing Market Update: Why Forecasts Changed in 2026If the Long Island housing market feels a little confusing right now, you're not imagining it.Many buyers entered 2026 expecting
Less House, More Home: Why Smaller Homes Are Paying Off for Today’s BuyersLess House, More Home: Why Smaller Homes Are Paying Off for Long Island BuyersIf you've been searching for a home on
You may be telling yourself you're going to wait to move. Maybe you're hoping mortgage rates will come down, prices will soften, or the market will feel a little less competitive.A lot of people
OneKey® MLS required Copyright, Source of Data and Disclaimer for IDX display
Information Copyright 2026, OneKey® MLS. All Rights Reserved.
The source of the displayed data is either the property owner or public record provided by non-governmental third parties. It is believed to be reliable but not guaranteed. This information is provided exclusively for consumers' personal, non-commercial use.
The data relating to real estate for sale on this website comes in part from the
