Housing
US Homeowner Equity Rises 10.6% Year Over Year in Q2
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Compared to the second quarter of 2016, homeowner equity in the second quarter of this year rose by $766.1 billion, up 10.6%. The number of homeowners whose mortgages exceed the value of the property (called negative equity or underwater) fell by 21.9%, or 3.6 million homes.
About 63% of all homeowners saw an equity boost last year, according to a report released Thursday by CoreLogic. The total does not include homes owned mortgage-free.
CoreLogic’s chief economist Frank Nothaft said:
Over the past 12 months, approximately 750,000 borrowers achieve positive equity. This means that mortgage risk continues to decline and, given the continued strength in home prices, CoreLogic expects home equity to rise steadily over the next year.
CEO Frank Martell added:
Homeowner equity reached $8 trillion in the second quarter of 2017, which is more than double the level just five years ago. The rapid rise in homeowner equity not only reduces mortgage risk, but also supports consumer spend and economic growth.
Homeowner equity rose fastest in these six states:
- Washington: $40,000 year over year
- California: $30,000
- Utah: $27,000
- Colorado: $22,000
- Massachusetts: $24,000
- Oregon: $21,000
The only state where equity did not change year over year was Delaware.
The 10 U.S. metro areas that experienced the largest increases in homeowner equity were:
- Miami: 14.7%
- Las Vegas: 12.2%
- Chicago: 10.8%
- Washington, D.C.: 7.2%
- New York City: 5.8%
- Boston: 3.9%
- Los Angeles: 2.3%
- Houston: 1.5%
- Denver: 1.4%
- San Francisco: 0.6%
States with the highest percentage of underwater homes were:
- Nevada: 10.6%
- Florida: 10%
- Illinois: 9.6%
- New Jersey: 8.8%
- Rhode Island: 8.6%
- Connecticut: 8.6%
The number U.S. homes with underwater mortgages reached a peak of 26% in the fourth quarter of 2009. The second-quarter average this year was 5.4% of all homes with a mortgage.
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