HOME EQUITY: YOU MAY HAVE MORE THAN
YOU THINK
CoreLogic’s latest Equity Report revealed that 92% of all mortgaged properties are now in a positive
equity situation. The report also revealed that "an additional 850,000 properties would regain equity if
home prices rose another 5 percent."
Price Appreciation = Good News For Homeowners
Frank Nothaft, CoreLogic’s Chief Economist, explains:
"In Q4 of last year home equity increased by $680 billion or 11.5 percent, the 13th consecutive quarter of
double digit growth. The improvement in equity reflects positive home prices and continued deleveraging
of mortgage balances by households."
Anand Nallathambi, President & CEO of CoreLogic, believes this is a great sign for the market in 2016
as well, as he had this to say:
"The number of homeowners with more than 20 percent 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 ultra low interest rates are also factors. Looking ahead in 2016, we expect home equity
levels to continue to build, which is a good thing for the long-term health of the U.S. economy."
But do they realize their equity position has changed?
A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in
their home as their investment has increased in value. For example, their study showed that 23% of
Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report
shows that only 8% of homes are in that position (down from 9% in Q2).
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