Most Homes Have Positive Equity
CoreLogic’s latest Equity Report revealed that one million home owners regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties will regain equity if home prices rise another 5% this year.
The study also revealed:
- 95% of homes valued over $200,000 now have a positive equity position
- 87% of homes valued under $200,000 have entered a positive position
- The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains
Here is a map showing by state, the percentage of homes with a mortgage that have positive equity. The states in gray have insufficient data to report.
Anand Nallathambi, President & CEO of CoreLogic, believes this is great news for the “long-term health of the U.S. economy.”” He went on to say:
“The number of homeowners with more than 20% equity is rising rapidly. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and ultralow interest rates are also factors.”
Of the 91.5% of homeowners with positive equity in the US, 72.6% have significant equity (defined as more than 20%). This means nearly 3 out of 4 homeowners with a mortgage could use the equity in their current home to purchase a new home now. Think about that!
The map below shows the percentage of homes with a mortgage, in each state, with significant equity.
Real Estate Bottom Line
If you are one of the many homeowners who is unsure of how much equity you have in your home and are curious about your ability to move, let’s meet up to evaluate your situation.