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.