It's 2018, Do You Know How Much Your House Is Worth?
CoreLogic’s latest Equity Report revealed that Equity in the residential market reached $908 Billion. After years of recovery, the US residential market shows that 95.1% of homeowners are in an equity position. Washington is slightly above the national average at 98.4%, but that is a far cry from the state of our market where almost a third of the the market was under water in 2012.
Price Appreciation = Good News for Homeowners and The Economy
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”
Frank Martell, President and CEO of CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:
“Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.”
This is great news for homeowners! But, do they realize their equity position has changed?
According to the Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize they may have more equity than they first thought.
“This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy.”
82.5% of homeowners have significant equity (i.e. more than 20%) in their homes today!
Many Americans with a mortgage have an opportunity to take advantage of today’s seller’s market. With a sizeable equity position, homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae spoke out on this issue:
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market…”
If you are one of the many Americans not sure of how much equity you have earned in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation!