CoreLogic’s latest equity report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in 2009.
The report also revealed:
- The average homeowner gained approximately $14,900 in equityduring the past year.
- Compared to Q3 2016, negative equity decreased 22%from 3.2 million homes, or 6.3% of all mortgaged properties.
- S. homeowners with mortgages(roughly 63% of all homeowners) have seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8% year-over-year.
Substantial equity is on the rise and has increased by almost $871 billion over the last year. This is the largest increase in more than three years. The increase is mostly a reflection of rising home prices, which drives up home values, leading to an increase in home equity.
Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have more than 20% equity in their home. This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.
If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, meet with a local real estate professional who can help assess your situation.