In the last 24 months the real estate market as a whole has gone through a huge recovery and it is continuing to change by the month. We have seen more buyers than sellers and home prices have experienced rapid appreciation, multiple offers in every price range.
With the speed of the change in the market and the most common question I get is “I Don’t know how much equity I have in my current home.” When you are operating from a position of lack of knowledge it creates uncertainty and you see below where you end up.
I want to bring something to your attention to clarify a report that has recently come out from Corelogic.
CoreLogic’s latest Equity Report revealed that 91.1% of all mortgaged properties are now in a positive equity situation, while 75.9% now have significant equity (defined as more than 20%)! The report also revealed that 548,000 households regained equity in the second quarter of 2016 and are no longer under water.
Price Appreciation = Good News for Homeowners
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“Home-value gains have played a large part in restoring home equity. The CoreLogic Home Price Index (HPI) for the U.S. recorded 5.2 percent growth in the year through June, an important reason that the number of owners with negative equity fell by 850,000 in the second quarter from a year earlier.”
Anand Nallathambi, President & CEO of CoreLogic, believes this is a great sign for the market in the coming year as well, as he had this to say:
“We see home prices rising another 5 percent in the coming year based on the latest projected national CoreLogic Home Price Index. Assuming this growth is uniform across the U.S. that should release an additional 700,000 homeowners from the scourge of negative equity.”
Below is a map illustrating the percentage of households in each state with significant equity.
If you are one of the many Americans who are unsure of how much equity you have in your home, don’t let that be the reason you fail to move on to your dream home this year!