Spread the great news: The country increased its volume of financially secure households by a tremendous amount in 2015. By the end of the last quarter, about 46.3 million – or 91.5 percent – of all the properties with a mortgage had equity, according to CoreLogic’s most up-to-date analysis, released recently. “The quantity of property owners with over 20 % equity is rising rapidly,” says Anand Nallathambi, president and CEO of CoreLogic. “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.”
One million Borrowers Regained Equity Last Year
The vast majority of residential properties with positive equity are typically for the higher end of the housing market, according to CoreLogic. Ninety-five percent of homes valued at $200,000 and up have equity, in comparison to 87 percent of homes below the $200,000 mark.
Despite recent gains, many home owners continue to be “under-equitied,” according to CoreLogic’s report. In excess of 50 million residential properties with a mortgage – or 18.9 % – have less than 20 % equity in their properties, and 1.2 million home owners – or 2.3 percent – have less than 5 % equity.
Some home owners still don’t have any equity. About 4.3 million home owners having a mortgage, around 8.5 percent, owe more on their home than it is currently worth as of the last quarter of 2015. That marks a small increase from 8.3 % within the prior quarter, but a 19 percent year-over-year decrease from 2014.
So now would be a good time to remodel your home if you plan on staying in it for a few years, or think about purchasing your new home. Nick & Cindy Davis are here to assist you. If you would like to know what your homes value is currently. You can give us a call at 813-300-7116 or simply click here and we will be in touch with you to go over your current home’s value with you.
