Editors' pick: Originally published Feb. 16.
You may like the idea of owning your own home, but you still aren't all that comfortable with spending the equity you've built in it.
Roughly 59 million American adults (one in four) are considering buying a home this year, according to a new report from Bankrate. Even though the National Association of Realtors and U.S. Census Bureau report the total amount of existing and new home sales in 2016 at around 6 million, total housing inventory ended 2016 at the lowest level since it began tracking the supply of houses in 1999. Older Millennials (ages 27-36) and Gen X-ers (37-52) are most likely purchase a new home this year, with 20% of both age groups interested in doing so.
"Among Millennials, there's a lot of pent-up demand for home buying," said Bankrate senior mortgage analyst Holden Lewis. "They have been stymied by stagnant wages, student loans and a lack of available starter homes. If enough affordable homes are put on the market, we might see a surge of first-time homebuyers in their early to mid-30s."
They'll just have no interest in using that home equity for a while, much like every other homeowner in the U.S. According to a survey by TD Bank's Philadelphia Home Show Survey, 58% of of homeowners say they have not used a home equity line of credit (HELOC). Though 74% of respondents said that their property value increased or stayed the same over the last 12 to 18 months, 75% say they won't consider using a HELOC in the near future.