712,000 Homes In The US Regained Equity
Back in July on the blog, I discussed the buy vs. rent debate which concluded that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. My recommendation was that it may be worthwhile to buy due to home values appreciating, and homeowner equity rising. This still remains true, as the latest Equity Report from CoreLogic revealed that 712,000 borrowers moved into positive equity.
The average homeowner gained approximately $14,900 in equity during the past year. This is great news for the housing market. Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years. Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.
The map below created by the KCM Crew shows the percentage of homes by state with a mortgage and significant equity. Note that Massachusetts is at 86.5%
If you are debating selling or buying I would be happy to meet with you and help evaluate your options.
Here’s December 2017’s Monthly Indicators Report from the Greater Boston Association of Realtors® showing Boston real estate market trends.
December 2017 Greater Boston Real Estate Market Trends
Sales of detached single-family homes and condominiums softened in December amid appreciating home prices and rising inventory, according to data released today by the Greater Boston Association of REALTORS® (GBAR).
The 1,027 single-family detached homes sold in December 2017 was a 9.7 percent decrease in sales from the 1,137 homes sold in December 2016. This total was the seventh-highest on record for the month of December, and is above the monthly sales average since 2003 of 984 homes sold. The condo market also experienced a decrease in sales as 793 units were sold in December 2017, which reflects a 14.3 percent drop in sales from the 925 units sold in December 2016, which is also the record high for December. This was the eighth most active December on record for condo sales and sits above the historical monthly average of 772 units sold.
- December condo sales DOWN -14.3%
- Median prices UP +15.8% ($542,000)
- Active Listings UP +7.3% to 1,441
- Listings added to the market -18.8% over last year (358 in 2017 from 441 in 2016)
- December single-family home sales DOWN -9.7%
- Median prices UP 8.1% ($589,000)
- Active Listings UP +17.5% to 2,311
- Listings added to the market UP +1.8% over last year (405 in 2017 from 398 in 2016)
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