Equity is shrinking as a percentage of American real estate holdings, according to recent economic analysis.
In its Flow of Funds Accounts of the United States study, released June 5, the Federal Reserve Board detailed information on residential mortgages and equity held by homeowners.
For the first quarter of 2003, homeowner equity equaled 55.2 percent of household real estate, the balance sheet said. This number fell steadily each quarter of 2002, starting the year at 57 percent and landing at 55.8 percent for the fourth quarter.
Actual equity value rose, totaling $7.67 trillion in the first quarter of 2003. Equity has been steadily climbing, with 2002's first quarter totaling $7.3 trillion.
Owner-occupied property, including manufactured housing, farm houses, second houses that weren't rented, vacant houses for sale and vacant land was valued at $13.89 trillion for first quarter 2003, according to the Fed. Fourth quarter 2002's household value came in at $13.70 trillion, the balance sheet said.