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California remains Golden State, $30,000 boost in equity in Q1

California remains Golden State, $30,000 boost in equity in Q1

By Ron Trujillo/ron@calhomenews.com

California homeowners should feel pretty rich, with the average homeowner enjoying a $30,000 increase in equity during the first quarter compared to a year ago, the second-highest gain in the nation, according to CoreLogic.

Washington state homeowners had the biggest equity gain at $40,000 compared to second-quarter 2016, followed by California and third-place Utah at $27,000.

Only 3.6% of homeowners are dealing with a negative equity mortgage, one of the lowest rates in the nation. San Francisco has the nation’s lowest rate of negative equity mortgages, at 0.6%. Los Angeles has the fourth-lowest rate in the nation at 2.3%.

Despite the impressive increase during the first quarter, CoreLogic says only some markets – such as San Francisco, the Inland Empire (Riverside and San Bernardino counties) and part of the Central Coast – were overvalued in July, the latest report available.

About a third of the state is considered “normal,” while the other third – primarily the Central Valley, from about Bakersfield to Stockton – is “undervalued.”

So, homeowners concerned about a bubble can breathe a bit easier, while home-shoppers should still consider entering about two-thirds of the markets, if financially possible.

Photo by Joseph Sohm/Shutterstock

 

 

 

 

 

 

Thinking about moving out-of-state? You’re not alone

Fast-rising home prices, already at record-highs in some parts of the state, are causing more Californians to look into moving – including out-of-state, according to a University of California, Berkeley IGS Poll released in mid-September.

Almost half (48%) of registered voters surveyed say the housing cost is an “extremely serious” problem in the are where they live, and 58% think about moving from their region because of housing costs. In fact, 25% of folks surveyed say they are considering leaving California in favor of lower-priced states.

As expected, voters who are renters and/or under 50 years old are more likely to relocate out of California, according to the report.

Photo by B Calkins/Shutterstock

 

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