As the year cruised through the halfway mark of 2017 like a blur, questions are raised on property equity in the United States. To answer that, CoreLogic made a 2017 US equity report and it was found out that 93.9% US homes have positive equity.
In the first quarter of 2017, the report showed that ninety-one thousand US residential properties got an equity increase.
This data was a good sign and in fact, there are around 600 thousand more properties that will regain equity if there would be a 5% increase in home prices this year.
Aside from that, Core Logic's study also revealed three major findings which appear to be good news.
First, there were about 63% of homeowners who have gotten an equity increase in the first quarter of 2016. Second, there was an equity increase of $14,000 for the average homeowner between the first quarters of 2016 and 2017. Lastly, the percentage of residential properties with near-negative equity is only at 1.6%.
For a detailed map of the number of mortgaged homes having positive equity in each state, click here.
Significance Of The 2017 US Equity Report
What do these numbers mean? To break it down, CoreLogic President & CEO Frank Martell simply put it that the 2017 US equity report is good news for the "long-term health of the U.S. economy."
And to that, he also added, “Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending, and the broader economy.”
In addition, Keeping Current Matters stated that 78.8% of the 93.9% homeowners have significant equity. It simply shows that about 3 out of 4 US homeowners with a mortgage can afford to buy a new house using that equity.
Now, for those homeowners who are not sure about their property equity, it would be best if they get professional help from local real estate services.