Transunion: Total Tappable Home Equity Remains High

(Image courtesy of Brett Sayles/pexels.com)

Transunion, Chicago, released its Q2 Home Equity Report, finding that total tappable home equity stands at $21.5 trillion, up 5% year-over-year.

As of the second quarter, 86 million homeowners have tappable equity, with a median amount of $267,000. A significant chunk–6.5 million–have more than $1 million in available equity.

Twenty-seven percent of consumers with available home equity fall in the low-to-moderate income homeowner category.

Transunion also found 38.2 million properties are free and clear with no lien.

The average combined loan-to-value ratio for all properties is 31%, but it’s 52% for financed properties, due to the large number of homes owned outright. The average CLTV for all properties remains above pre-pandemic levels.

HELOC originations rose 12% year-over-year, with Q1 (the most recent data available) volumes consistent with pre-pandemic levels.

Originations for home equity loans–HELOANs–were also up 12% year-over-year, with 266,000. That’s the highest volume in the past six years, Transunion said.

The overall average for home equity extracted in Q1 was almost flat year-over-year.

Home equity account volumes were up 5% year-over-year.

But, delinquencies for both HELOCs and HELOANs remain low.

Looking more generally, the homeowner population had $808 billion in non-mortgage debt in Q2, up by 4% year-over-year. That averages out to $8,500 per homeowner. And, about 22.8 million homeowners have at least $10,000 in non-mortgage debt.