Even worse, recessions that reduce the value of retirement assets will also tend to hit wage income and home equity.
But the fuel that powers spending for most shoppers is wages, not savings, or dividends, or capital gains, or home equity.
This, in turn, will reduce the amount of home equity that blue homebuyers build.
the current market value of a home minus the outstanding principal mortgage balance
early 14c., from Old French equite (13c.), from Latin aequitatem (nominative aequitas) "equality, conformity, symmetry, fairness," from aequus "even, just, equal" (see equal). As the name of a system of law, 1590s, from Roman naturalis aequitas, the general principles of justice which corrected or supplemented the legal codes.
In real estate, the financial value of someone's property over and above the amount the person owes on mortgages. For example, if you buy a house for $100,000, paying $20,000 down and borrowing $80,000, your equity in the house is $20,000. As you pay off the principal of the loan, your equity will rise.