{"id":6963,"date":"2014-09-29T13:21:57","date_gmt":"2014-09-29T13:21:57","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=6963"},"modified":"2014-09-29T13:21:57","modified_gmt":"2014-09-29T13:21:57","slug":"1-million-homes-regain-equity","status":"publish","type":"post","link":"http:\/\/www.anthonydidonato.net\/wordpress\/1-million-homes-regain-equity\/","title":{"rendered":"1 Million Homes Regain Equity"},"content":{"rendered":"

1 Million Homes Regain Equity<\/h2>\n
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1 Million Homes Regain Equity. Image courtesy of phanlop88 \/ FreeDigitalPhotos.net<\/p><\/div>\n

Nearly 950,000 homes returned to positive equity in the second quarter, now bringing the total number of residential homes with equity nationwide to more than 44 million, according to CoreLogic\u2019s Equity Report.<\/p>\n

\u201cThe increase in borrower equity of $1 trillion from a year earlier is evidence that things are moving solidly in the right direction,\u201d says Sam Khater, deputy chief economist for CoreLogic. \u201cBorrower equity is important because home equity constitutes borrowers\u2019 largest investment segment and, as a result, is driving forward the rise in wealth for the typical home owner.\u201d<\/p>\n

Still, home price rises are needed to help more home owners feel more confident in their equity position. Of the 44 million properties with positive equity, about 9 million \u2013 or 19 percent \u2013 have less than 20 percent equity (labeled \u201cunder-equitied\u201d), and 1.3 million have less than 5 percent (considered \u201cnear-negative equity\u201d), according to CoreLogic.<\/p>\n

About 5.3 million homes \u2013 or 10.7 percent of all residential properties with a mortgage \u2013 remained in negative equity as of the second quarter. The number is falling. A year ago, 7.2 million homes \u2013 or 14.9 percent \u2013were in negative equity. Negative equity is when borrowers owe more on their mortgages than their homes are currently worth.<\/p>\n

\u201cBorrowers who are \u2018under-equitied\u2019 may have a more difficult time refinancing their existing homes or obtaining new financing to sell and buy another home due to underwriting constraints,\u201d according to CoreLogic\u2019s report.<\/p>\n

If home prices rise by just 5 percent, an additional 1 million home owners currently in negative equity could regain equity, according to CoreLogic\u2019s analysis.<\/p>\n

\u201cMany home owners across the country are seeing the equity value in their homes grow, which lifts the economy as a whole,\u201d says Anand Nallathambi, president and CEO of CoreLogic. \u201cWith more and more borrowers regaining equity, we expect home ownership to become an increasingly attractive option for many who have remained on the sidelines in the aftermath of the Great Recession.\u00a0This should provide more opportunities for people to sell their homes, purchase a different home or refinance an existing mortgage.\u201d<\/p>\n

State Breakdown<\/h4>\n

The states with the highest percentage of properties with a mortgage in negative equity as of the second quarter were:<\/p>\n