CoreLogic: 268,000 Homeowners Regained Equity in First Quarter

CoreLogic, Irvine, Calif., said 268,000 homeowners regained equity in the first quarter, bringing the total mortgaged residential properties with to 46.7 million, or 92 percent of all mortgaged properties.

Nationwide, CoreLogic said home equity increased year over year by $762 billion in the first quarter.

The report said the total number of mortgaged residential properties with negative equity stood at 4 million, or 8 percent of all homes with a mortgage, in the first quarter, a decrease of 6.2 percent quarter over quarter from 4.3 million homes, or 8.5 percent, in the fourth quarter and a decrease of 21.5 percent year over year from 5.1 million homes, or 10.3 percent, compared to a year ago.

For homes in negative equity status, CoreLogic said the national aggregate value of negative equity was $299.5 billion at the end of the first quarter, a decrease of $11.8 billion, or 3.8 percent, from $311.3 billion in the fourth quarter, and an 11.8 percent decline from a year ago.

Of the more than 50 million homes with a mortgage, 9.1 million, or 18 percent, have less than 20 percent equity (referred to as “under-equitied”) and 1.1 million, or 2.2 percent, have less than 5 percent equity (referred to as near-negative equity)..

“The rapid increase in home equity reflects the improvement in home prices, dwindling distressed borrowers and increased principal repayment,” said Frank Nothaft, chief economist for CoreLogic. “These are all positive factors that will provide support to both household balance sheets and the overall economy.”

Other report highlights:
–Nevada had the highest percentage of homes in negative equity at 17.5 percent, followed by Florida (15 percent), Illinois (14.4 percent), Rhode Island (13.3 percent) and Maryland (12.9 percent). Combined, these top five states account for 30.2 percent of negative equity in the U.S., but only 16.5 percent of outstanding mortgages.
–Texas had the highest percentage of homes with positive equity at 98.1 percent, followed by Alaska (97.8 percent), Hawaii (97.8 percent), Colorado (97.5 percent) and Washington (97.2 percent).
–Of the 10 largest metropolitan areas by population, Las Vegas had the highest percentage of homes in negative equity at 19.9 percent, followed by Miami (19.6 percent), Chicago (16.7 percent), Washington, D.C. (10.9 percent) and New York (6 percent).
Of the same 10 largest metropolitan areas, San Francisco had the highest percentage of homes in a positive equity position at 99.4 percent, followed by Houston (98.3 percent), Denver (98.3 percent), Los Angeles (96.1 percent) and Boston (94.3 percent).
–Of the total $299.5 billion in negative equity nationally, first liens without home equity loans accounted for $166 billion, or 55 percent, in aggregate negative equity, while first liens with home equity loans accounted for $134 billion, or 54 percent.
–Among underwater borrowers, 2.4 million hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $244,000 and the average underwater amount is $68,000.
–Nearly 1.6 million of all underwater borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $307,000 and the average underwater amount is $84,000.
–The bulk of positive equity for mortgaged residential properties is concentrated at the high end of the housing market. Ninety-five percent of homes valued at $200,000 or more have equity compared to 87 percent of homes valued at less than $200,000.