74% of Households Have Significant Equity
CoreLogic’s latest Equity Report revealed that 92% of all mortgaged properties are now in a positive equity situation, while 74% actually have significant equity of more than 20%. The report showed that 268,000 households regained equity in the first quarter of 2016 and are no longer “upside down”.
Price Appreciation = Good News for Homeowners!
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“In just the last four years, equity for homeowners with a mortgage has nearly doubled to $6.9 trillion. The rapid increase in home equity reflects the improvement in home prices, dwindling distressed borrowers and increased principal repayment.
These are all positive factors that will provide support to both household balance sheets and the overall economy.”
Anand Nallathambi, President & CEO of CoreLogic, sees this is a great sign for the market in 2016:
“More than 1 million homeowners have escaped the negative equity trap over the past year. We expect this positive trend to continue over the balance of 2016 and into next year as home prices continue to rise.“
Below is a map illustrating the percentage of households in each state with significant equity:
With more than 20% equity in their home, many people would be able to use that equity as a down payment on their next dream home.
Real Estate Bottom Line
If you are unsure of how much equity you have in your home, let me do a market analysis for you!