Westchester County NY Real Estate Blog - Equity

30 Years of National Homeownership Month

30 years of National Homeownership Month 

Homeownership remains a cornerstone of the American Dream — but getting started can feel overwhelming. Nearly 1 in 4 Gen Z and Millennial adults say they’re anxious about where to begin and who to trust. And 69% of U.S. adults mistakenly believe mortgage rates are at all-time highs. Add Redfin’s headline about “500,000 more sellers than buyers,” and hesitation is understandable. But here’s what’s missing:

• 72% of renters are more worried about rising rents and their long-term finances.

• While rates are up from pandemic lows, they’re still under the historical average of 7.7%; and projected to dip in the year ahead.

• 22 of the top 50 metro areas have returned to…

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What If You Bought Your Home in 1995?

What If You Bought Your Home in 1995?

According to ResiClub's analysis of the Freddie Mac House Price Index, U.S. home prices surged by an impressive 300% from March 1995 to March 2025. Despite market fluctuations over the past three decades, homeowners experienced substantial gains in home equity, highlighting the enduring value of real estate as a wealth-building tool. Some may argue that stocks offer superior returns, noting that the S&P 500 Index rose by roughly 926% over the same period, but consider this:

• Leverage: Home price gains can yield far higher returns on a buyer’s down payment due to mortgage leverage.

• Opportunity Cost: Choosing to skip homeownership often means paying rent and underinvesting in…

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Equity Flex: Baby Boomers are Driving the Market

Equity Flex: Baby Boomers are Driving the Market

Despite millennials entering their peak home-buying years, baby boomers outpaced them significantly in home purchases over the past year. According to the 2025 Home Buyers and Sellers Generational Trends Report by the National Association of Realtors (NAR), baby boomers accounted for 42% of all home buyers, a sharp contrast to the 29% share held by millennials. This marks a notable decline in millennial participation, down from 38% the year before. Additional findings:

• Silent Generation (ages 79–99): purchased highest share of new construction.

• Baby Boomers (ages 60-78): the largest share of buyers and sellers.

• Gen Xers (ages 45-59): made up 24% of home…

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Today’s mortgage debt doesn’t mean a housing bubble is brewing

Visual of the Week

Today’s mortgage debt doesn’t mean a housing bubble is brewing.

Homeowners have built up record equity, and it’s nearly triple the amount of mortgage debt. This extra cushion gives homeowners more security, making the market much more stable than it was in 2008.

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Consider the Long-Term Wealth-Building Benefits

Visual of the Week 

Consider the Long-Term Wealth-Building Benefits

Homeownership isn't just about having a place to live — it's a key to building wealth. As you pay off your mortgage, your equity grows, and any increase in your home's value adds to your net worth. According to the Federal Housing Finance Agency (FHFA), home values have increased by 315.7% since 1991.

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The Dramatic Shift of New York's Home Prices Since March 2020

The Dramatic Shift of New York's Home Prices Since March 2020

Ralph’s Take

The pandemic initially brought uncertainty and a brief market slowdown, with Westchester County brokers unable to show properties from March 22 to June 10, 2020. However, this was soon followed by a significant surge in demand. As lockdowns and remote work prompted people to seek more space, our area saw an influx of buyers relocating from New York City. Coupled with historically low mortgage rates, these factors drove a rapid…

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Fortune: Homeowners Sitting on a Record Amount of Equity.

FORTUNE: HOMEOWNERS SITTING ON A RECORD AMOUNT OF EQUITY

Home prices are significantly higher than before the pandemic, driven by buyers using record amounts of equity. Realtor.com’s chief economist, Danielle Hale, highlights that buyers not affected by current mortgage rates are opting for more expensive homes. This trend is also evident among sellers, particularly baby boomers unaffected by high mortgage rates. Here’s what else the Fortune article reports:

• Baby boomers: 17% are free of the lock-in effect

• Mortgage rates: Averaging 7.14% daily, 6.86% weekly.

• Market shift: Increase in lower-priced home inventory

• Future outlook: Potential for mortgage rate drops may stabilize or further shift prices…

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86% of Mortgages Have a Rate Below 6%

86% of Mortgages Have a Rate Below 6%

According to a report by the FHFA National Mortgage Database Aggregate Statistics, 85.6% of mortgaged homes have a rate below 6%, down from the peak of 92.8% in the 2nd quarter or 2022.

Key Points:

• Strong Borrowers: The average credit score among borrowers with an active loan is an impressive 743.

• Low Foreclosure Risk: Only 0.3% of borrowers have negative equity.

• Improved Loan-to-Value Ratios: National LTV ratio improved to 48.3% from 70% a decade ago.

• Outstanding Mortgages: At the end of Q1 2024, there were 50.8 million outstanding mortgages with unpaid balances totaling $11.7 trillion.

Ralph’s Take

Despite concerns that…

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