CoreLogicâ€™sÂ latestÂ Equity ReportÂ revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation.
Price Appreciation = Good News for Homeowners
Frank Nothaft,Â CoreLogicâ€™s Chief Economist,Â explains:
â€œOne million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.â€�
Frank Martell,Â President and CEO ofÂ CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:
â€œHomeowner 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.â€�
This is great news for homeowners! But, do they realize that their equity position has changed?
According to the Fannie Maeâ€™s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.
â€œThis is only the second time in the surveyâ€™s history that the net share of those saying itâ€™s a good time to sell surpassed the net share of those saying itâ€™s a good time to buy.â€�
78.8% of homeowners have significant equity (more than 20%) in their homes today!
This means that many Americans with a mortgage have an opportunity to take advantage of todayâ€™s sellerâ€™s market. 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).
Doug Duncan, Senior Vice President and Chief Economist at Fannie MaeÂ spoke out on this issue:
â€œHigh home prices have led many consumers to give us the first clear indication weâ€™ve seen in the National Housing Surveyâ€™s seven-year history that they think itâ€™s now a sellerâ€™s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the marketâ€¦â€�Â
If you are one of the many Americans who is unsure of how much equity you have built in your home, donâ€™t let that be the reason you fail to move on to your dream home in 2017! Letâ€™s get together to evaluate your situation!
Source: Keeping Current Matters