As home prices have progressively increased throughout the housing market recovery, more and more mortgaged residential homes are finally gaining enough equity to pull them out of the negative equity status. (Negative equity means that a mortgage borrower owes more money on the home than the property is worth.) In the first quarter 2015, 240,000 more properties regained equity according to CoreLogic’s latest Equity Report. Nationally, 44.9 million homes now have equity while an estimated 5.1 million homes remain in a negative equity status.
Anand Nallathambi, CoreLogic’s President and CEO, stated, “Many homeowners are emerging from the negative equity trap, which bodes well for a continued recovery in the housing market. With the economy improving and homeowners building equity, albeit slowly, the potential exists for an increase in housing stock available for sale, which would ease the current imbalance in supply and demand.” Were home price appreciation to rise another 5%, CoreLogic said 1.0 million more homes would regain equity.
The negative equity share in Idaho (7.6%), Montana (3.2%) and Washington (5.4%) were reported lower than the national share of 10.2%. Sufficient equity data for Wyoming was not available.