According to a press release from Hollister Group, LLC & NRMLA, Americans age 62 or older hold an estimated $4.3 trillion of home equity. The index(RMMI) which was launched last week is the first market indicator to collect critical market, housing and demographic data, as well as track and project the market for reverse mortgages. According to the press release, in the first quarter of 2007, there was a $19 billion increase in senior home equity. This increase was reflected in a 0.4% increase in the RMMI to 205.6 from 204.7 in the prior quarter. The index will be updated to reflect the current value of senior home equity on a quarterly basis.
Interesting observations and statistics from the inaugural launch of the RMMI, include:
- RMMI projects as much as $37 trillion in home value by 2030, from which home equity figures are derived, assuming historical appreciation and taking into account the demographic shift as boomers begin to turn 62;
- The average home equity in a senior-owned household is estimated to be about $230,000 according to the Hollister Group;
- Current $19B growth in Q1 2007 is the lowest increase of all quarters from 2000;
- 2004 and 2005 experienced the strongest growth in home equity — $464 billion and $600 billion respectively.
To read a copy of the press release click the link below.
Also, posting will be light over the 4th of July, but I will be back following week.