2021 RealTrends 500 Now Live!

The RealTrends 500, now in its 34th year, remains the undisputed leading report ranking the performance of the top residential real estate brokerage firms.

Gathering of Eagles

The Gathering of Eagles conference is the Trusted Source, offering brokers, managers and leaders valuable insider industry information on how to run a profitable business.

RealTrending: eXp’s Glenn Sanford

Glenn Sanford, CEO of eXp World holdings, addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Newsletter

The RealTrends monthly newsletter is known as the trusted industry source for information on trends, strategies, analysis, people and news shaping the real estate industry of tomorrow.

CoreLogic Reports Strong Economy Boosts Homeowner Equity by About $1 Trillion in the Second Quarter of 2018

CoreLogic Reports Strong Economy Boosts Homeowner Equity by About $1 Trillion in the Second Quarter of 2018

·       The share of properties in negative equity fell to 4.3 percent in the second quarter 2018

·       Approximately 221,000 residential properties regained equity compared with the first quarter of 2018

·       About 2.2 million mortgaged residential properties are still in negative equity

CoreLogic® (NYSE: CLGX), a global property information, analytics and data-enabled solutions provider, today released the Home Equity Report for the second quarter of 2018. The report shows that U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) have seen their equity increase by 12.3 percent year over year, representing a gain of nearly $981 billion since the second quarter of 2017.

Additionally, the average homeowner gained $16,200 in home equity between the second quarter of 2017 and the second quarter of 2018. While home equity grew in almost every state in the nation, western states experienced the most significant increases. California homeowners gained an average of approximately $48,800 in home equity, and Washington homeowners experienced an average increase of approximately $41,100 in home equity (Figure 1).

From the first quarter of 2018 to the second quarter of 2018, the total number of mortgaged homes in negative equity decreased 9 percent to 2.2 million homes or 4.3 percent of all mortgaged properties. Year over year, the number of mortgaged properties in negative equity fell 20.1 percent from 2.8 million homes – or 5.4 percent of all mortgaged properties – in the second quarter of 2018.

“Homeowner properties continued to increase in value this quarter with homeowners gaining an average of $16,200 in home equity wealth,” said Dr. Frank Nothaft, chief economist for CoreLogic. “When aggregated across all homeowners that totals almost $1 trillion in gains in home equity wealth. This wealth gain will support additional consumption spending and home improvement expenditures in coming years.”

Negative equity, often referred to as being underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home’s value, an increase in mortgage debt or both. Negative equity peaked at 26 percent of mortgaged residential properties in the fourth quarter of 2009, based on the CoreLogic equity data analysis which began in the third quarter of 2009.

The national aggregate value of negative equity was approximately $279.8 billion at the end of the second quarter of 2018. This is down quarter over quarter by approximately $5.5 million, from $285.3 billion in the first quarter of 2018.

“Negative equity levels continue to drop across the US with the biggest declines in areas with strong price appreciation,” said Frank Martell, president and CEO of CoreLogic. “Further, the relatively low level of shadow inventory contributes to the chronic shortage of housing supply and price increases in many markets.”

For ongoing housing trends and data, visit the CoreLogic Insights Blog

Most Popular Articles

Is Biden’s downpayment plan pouring gasoline on a fire?

The last time the federal government stepped in to help homeownership, we ended up with a housing crash. Is the Downpayment Toward Equity Act of 2021 the right legislation for today’s market?

Apr 20, 2021 By

Latest Articles

What’s the deal with The Real Brokerage Inc.?

Described by some as the silent lion in the corner of the room, Real Brokerage is starting to get some buzz from agents who want a chance to be in on the ground floor of a growing company.

Apr 22, 2021 By