CoreLogic: 78,000 Single-Family Properties Regained Equity in 3Q
CoreLogic, Irvine, Calif., said U.S. homeowners with mortgages–representing 64% of all properties–saw their equity increase by 5.1% year over year in the third quarter, a gain of nearly $457 billion from a year ago.
The company’s quarterly Home Equity Report said the average homeowner gained $5,300 in home equity between third quarter 2018 and third quarter 2019. From the second quarter to the third quarter, mortgaged homes in negative equity decreased by 4% to 2 million homes or 3.7% of all mortgaged properties. Mortgaged properties in negative equity during the third quarter fell by 10%, or 220,000 homes, compared to 2.2 million homes, or 4.1% of all mortgaged properties, a year ago.
The report said states with largest gains include Idaho, where homeowners gained an average of $25,800; Wyoming, where homeowners gained an average of $24,000; Utah, where homeowners gained an average of $21,000; and Montana, where homeowners gained an average of $17,800.
“Ten years ago, during the depths of the Great Recession, more than 11 million homeowners had negative equity or 25% of mortgaged homes,” said Frank Nothaft, chief economist with CoreLogic. “After more than eight years of rising home prices and employment growth, underwater owners have been slashed to just 2 million, or less than 4% of mortgaged homes.”
CoreLogic said negative equity peaked at 26% of mortgaged residential properties in fourth quarter 2009.
The report said the national aggregate value of negative equity stood at $301 billion at the end of the third quarter, down by $2.4 billion, or 0.8%, from $303.4 billion in the second quarter but up by $17.1 billion, or 6%, from $283.9 billion a year ago. “The negative equity share continues to decline thanks to rising home prices across the nation,” said Frank Martell, president and CEO of CoreLogic.