The most recent Equity Report from CoreLogic indicates that one million borrowers regained equity in their homes in 2015. This year looks positive also, with an additional 850,000 properties predicted to 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 positive equity.
– The 11.5% growth in home equity during the fourth quarter of 2015 marked the 13th consecutive quarter of double-digit gains.
The map below shows the percentage of mortgaged homes in each state that have positive equity.
The president and CEO of CoreLogic, Anand Nallathambi, states, “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.” He adds that increased home equity helps to improve the “long-term health of the U.S. economy.”
Even better news is that of the 91.5% of homeowners with positive equity, 72.6% have significant equity, defined as more than 20%. This fact means that nearly three of every four homeowners with a mortgage could now use the current home equity to purchase a new home.
This map shows the percentage of homeowners who have significant equity in their mortgaged homes.
Do you have significant positive equity? Would you like to begin a home search? Contact us today, and let us help you.