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CoreLogic’s report on home equity sheds new light on the current state of affairs in the mortgage real estate market. The report reveals borrower equity increased by $457 billion from the previous year during Q3 2019.
This amount accounts for an increase of 5.1% within the span of a single year.
Borrower equity climaxed during Q3 2019, with borrowers accumulating more than $6 trillion in equity since 2011. This trend could be explained by the fact that homeowners have remained relatively stationary, living within their respective homes as they age—choosing to renovate and upgrade versus moving and purchasing new homes.
CoreLogic points to the positive fact that this rise in home equity will usher in an influx of funds that these homeowners may utilize to further finance more of their desired home improvements and upgrades.
The report also revealed the nationwide negative equity share for the third quarter of 2019, which showed 3.7% of all homes with a mortgage. This statistic reveals that this quarter posed the lowest share of homes with negative equity since 2009. Another positive statistic was revealed regarding the number of underwater properties this quarter, which fell by 210,000 during the year.
Among the states that posed the largest negative equity share in Q3, Louisiana tops the list with 10.1% of mortgages with negative equity, a staggering statistic that stands at more than twice the national average. Fast on Louisiana’s heels were Connecticut at 7.4% and Illinois at 7%.
