firstname.lastname@example.org | May 18, 2019 | 0
CoreLogic: $30,000 equity boost in Q2
By Ron Trujillo / email@example.com
Homeowners continue to build impressive equity in California, despite much-slower and smaller price gains in the housing market during the past several months.
The average homeowner enjoyed a hefty $30,000 increase in equity during the second quarter, compared to a year ago, according to housing industry analysis firm CoreLogic. Of course, some markets — such as the Bay Area and parts of Southern California — enjoyed much-larger increases in equity, while others, like the Central Valley and Northern California, had smaller gains.
California homeowners had the third-largest financial gain in the nation, behind red-hot Washington state’s $40,000 increase and the $34,000 jump in Hawaii.
Nationwide, the average homeowner had a $13,000 boost in equity during the April through June period compared to a year ago.
Because of the fast-rising home prices in parts of the state, fewer homeowners are dealing with negative equity — where homeowners owe more than the value of their home.
Almost all homeowners in San Francisco — 99.4% — have equity. The city’s 0.6% negative equity rate is the lowest of major metropolitan areas in the nation, followed by second-place Denver at 1.4% and Houston at 1.5%.
Los Angeles finished in fourth-place at 2.3%. California overall has a 3.6% negative equity rate, much better than the 5.4% rate nationwide, though nowhere near the sub-2% rates found in Texas, Utah, Washington, Colorado, Oregon and Hawaii.
How much has the market changed? Negative equity peaked at 26% in fourth-quarter 2009 during the height of the housing market collapse and foreclosure crisis.
“Over the last 12 months, approximately 750,000 borrowers achieved positive equity,” says Frank Nothaft, chief economist at CoreLogic. “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.”
Feature photo by Ann Baldwin/Shutterstock.