CoreLogic’s
latest Equity Report revealed that 256,000
properties regained equity in the third quarter of 2015. This is great news for
the country, as 92% of all mortgaged properties are now in a positive equity
situation.
Price Appreciation =
Good News For Homeowners
Frank Nothaft, CoreLogic’s
Chief Economist, explains:
“Home price growth continued to lift borrower equity positions
and increase the number of borrowers with sufficient equity to participate in
the mortgage market. In the last three years, borrowers with at least 20 percent
equity have increased by 11 million, a substantial uptick that is driving rapid
growth in home equity originations.”
Anand Nallathambi, President
and CEO of CoreLogic, believes this is a great sign for the
market in 2016 as well, as he had this to say:
“Homeowner equity is the largest source of wealth for many
Americans. The rise in home prices, expected to be at least 5% in 2016,
will continue to build wealth and confidence across America. As this process
continues, it will provide support for the housing market and the broader
economy throughout [the] year.”
This is great news for
homeowners! But, do they realize that 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). The
study also revealed that only 37% of Americans believe that they have
“significant equity” (greater than 20%), when in actuality, 74% do! 
This means that 37% of
Americans with a mortgage fail to realize the opportune situation they are in.
With a sizeable equity position, many homeowners could easily move into a
housing situation that better meets their current needs (moving to a larger
home or downsizing). Fannie
Mae spoke out on this issue in their report:
This means that 37% of
Americans with a mortgage fail to realize the opportune situation they are in.
With a sizeable equity position, many homeowners could easily move into a
housing situation that better meets their current needs (moving to a larger
home or downsizing). Fannie
Mae spoke out on this issue in their report:
“Homeowners who underestimate their homes’ values not only
underestimate their home equity, they also likely underestimate 1) how large a down
payment they could make with their home equity, 2) their chances of qualifying
for mortgages, and, therefore, 3) their opportunities for selling their current
homes and for buying different homes.”
Bottom Line
If you are one of the many Americans who are
unsure how much equity you have built in your home, don’t let that be the
reason you fail to move on to your dream home in 2016! Meet with a local real
estate professional today, who can help you evaluate your situation and assist
you along the way! Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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