CoreLogic: Equity increases $51,000 during the past year
By Ron Trujillofirstname.lastname@example.org
Need some evidence the red-hot housing market in California may be just a little too hot?
The average homeowner enjoyed a hefty $51,000 increase in equity during the first quarter compared to the same three-month period a year ago, according to CoreLogic. Yep, $51,000. A couple of things to consider with the dramatic increase:
- The home equity increase is 75% of the median-household income of $67,739, according to the Census Bureau.
- The average California household had a healthy 5% increase in pay in 2017 — or about $3,400, a far cry from the $51,000 equity gain during the first quarter.
- California’s equity gain was more than three times the national average of $16,000.
The booming equity increase is a heartbreaking headline for home shoppers who continue to deal with fast-rising prices and now higher mortgage rates in recent months.
The California dream of buying a home is becoming more like a real-life nightmare for shoppers. About only one of every three families could afford the median-priced home in the first quarter of the year, according to the California Association of Realtors.
The hard-to-imagine equity increases in recent years have definitely helped homeowners, especially those who bought a decade ago and dealing with an underwater mortgage. Only 2.7% of homeowners with a mortgage are faced with negative equity, one of the lowest percentages in the nation.
San Francisco and Los Angeles boast the lowest and fourth-lowest negative equity rates for major metro regions in the nation at 0.5% and 1.6%, respectively.
Photo of a cluster of Simi Valley homes by Trekandshoot/Shutterstock
3 of 6 best Big Cities are in California
Another month, another list of the best cities. But this one is a bit different.
Resonance Consultancy, a leader in the destination branding industry, collects a ton of public date troves on big and small cities from coast to coast, focusing on 27 criteria, including crime rates, air quality, housing affordability, entertainment offerings, cultural diversity, and economic vitality.
Then, the company adds subjective opinions based on a 1,000-person Ipsos poll and combines with the sentiment analysis of online sites such as as TripAdvisor and Instagram.
The study identifies cities that are most desirable for locals, visitors and businesspeople, rather than just looking at livability or tourism appeal.
Despite affordability challenges, California had three of the top six big cities listed — Los Angeles and San Francisco at third- and fourth-place, respectively, followed by San Diego at No. 6
San Jose landed at No. 13, while Sacramento ranked at No. 33. Riverside finished at No. 45 in the top 50 list.
New York was the top-ranked big city, followed by Chicago, according to Resonance Consultancy.
Photo of Los Angeles by Blvdone/Shutterstock