Nearly half of Winston-Salem residents were considered equity-rich, according to Attom’s Q3 2022 U.S. Home Equity & Underwater Report. The real estate research firm found that 49.6% of Winston-Salem households, or 61,131, were in the equity-rich category during the third quarter, up from 48.3% in the second quarter and 42.7% in the first quarter. 

Attom defines as equity-rich the property owner who had at least 50% equity, or a loan-to-value ratio of 50% or lower. The Winston-Salem metropolitan area includes Davidson, Davie, Forsyth, Stokes, and Yadkin counties. 

The report also noted a slight decline in seriously underwater mortgaged properties. Attom defines a seriously underwater mortgage as a home loan that’s worth at least 25% more than the home’s fair market value. In the third quarter, 2.5% of Winston-Salem households, or 3,304, were listed as seriously underwater, down from 2.6% in the second quarter and 2.8% in the first quarter.

“Even though home price appreciation has slowed down dramatically in recent months, homeowners have continued to build equity,” said Rick Sharga, executive vice president of market intelligence at Attom. “And it appears that many of those homeowners have decided to stay where they are rather than purchase a new home, and are beginning to tap into that equity, as the number of home equity lines of credit (HELOCs) issued in the second quarter of 2022 rose by 43 percent from the prior year.”

A HELOC allows homeowners to tap into their equities and draw money from the credit line as needed while only paying interest on the portion of the line they use. It operates similarly to credit cards but at lower rates than most credit cards, as the loan is secured by the equity in one’s home. Call me today to set up an appointment! I would love to review your finances and help you determine if a home equity loan is right for you.