Home / Daily Dose / Breaking Away From the Negative Equity Trap
Print This Post Print This Post

Breaking Away From the Negative Equity Trap

affordabilityEquity for U.S. mortgage holders has increased by nearly $775. 2 billion (or 9.4 percent) since the Q3 2017, according to an analysis by CoreLogic.

The analysis indicated that homeowners are breaking away from the negative equity trap. It reflected a decrease in negative equity of total mortgaged residential properties by 4 percent in 2018, compared to 4.1 percent the previous year. Compared to the third quarter of 2017, negative equity decreased 16 percent from 2.6 million homes, or 5 percent of all mortgaged properties.

According to the CoreLogic, at the end of the third quarter of 2018, the national aggregate of negative equity recorded an approximate of $281.6 billion—a drop every quarter by approximately $1.1 billion, from $280.5 billion in the second quarter of 2018. Compare this to 2009, negative equity peaked at 26 percent of mortgaged residential properties.

Nationally, the average homeowner gained approximately $12,400 in equity during the past year, with California recording the highest year-over-year average increase at $36,500. At the metropolitan level, negative equity continues to improve across the country, with the exception of Miami-Miami Beach and Kendall-Florida, at 11.2 percent year over year, the report found.

“The number of homes in a negative equity position has remained around 2.2 million for two consecutive quarters this year. Without equity, those homeowners are unable to sell their homes and are more likely to transition from delinquency to foreclosures if they face financial distress,” said Frank Nothaft, Chief Economist at CoreLogic.



About Author: Donna Joseph

Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at donna.joseph@thefivestar.com.
x

Check Also

Wells Fargo Names New COO

From Scott Powell's appointment as COO at Wells Fargo to over $1B in funding from First American Title Insurance, get the latest updates in this Industry Pulse.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.