CoreLogic’s first-quarter (Q1) 2017 home equity analysis shows that U.S. homeowners with mortgages (about 63% of all homeowners) have seen their equity increase by a total of $766.4 billion since the first quarter of last year 2016, representing an increase of 11.2%. In turn, the average homeowner gained about $13,400 in equity between Q1 2016 and Q1 2017.
In Q1 2017, the total number of mortgaged residential properties with negative equity decreased 3% from Q4 2016 to 3.1 million homes, or 6.1% of all mortgaged properties. Compared with Q1 2016, negative equity decreased 24% from 4.1 million homes (or 8.1% of all mortgaged properties).
“One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices,” says Dr. Frank Nothaft, chief economist for CoreLogic.
“Pockets of concern remain with markets such as Miami, Las Vegas and Chicago, which are the top three for negative equity among large metros, with each recording a negative equity share at least twice or more the national average,” he adds.
Negative equity peaked at 26% of mortgaged residential properties in Q4 2009 based on CoreLogic equity data analysis, which began in Q3 2009.
The national aggregate value of negative equity was approximately $283 billion at the end of Q1 2017 – down quarter over quarter by approximately $2.6 billion, or 0.9%, from $285.5 billion in Q4 2016 and down year over year by approximately $21.5 billion, or 7.1%, from $304.5 billion in Q1 2016.
“Homeowner equity increased by over $750 billion during the last year – the largest increase since mid-2014,” notes Frank Martell, president and CEO of CoreLogic. “The rising cushion of home equity is one of the main drivers of improved mortgage performance. It also supports consumer balance sheets, spending and the broader economy.”