New Report Shows 1.2 Million U.S. Borrowers Regained Equity in 2014
Ever since the beginning of the real estate and mortgage meltdown in particular between December 2007 and June 2009, millions of homeowners lost equity positions in their homes. For some it was not a big mover, but for many it was. In fact we witnessed both professionally and personally how hundreds of thousands in equity was depleted. So now in 2015 it’s refreshing to see data showing the continued progression of the housing recovery thanks to CoreLogic’s® newest data.
“CoreLogic® recently released new analysis showing 1.2 million borrowers regained equity in 2014, bringing the total number of mortgaged residential properties with equity at the end of Q4 2014 to approximately 44.5 million or 89 percent of all mortgaged properties.” via RisMedia
Borrower Equity Increased Year Over Year
The RisMedia article further states that the year over year increase represented $656 billion Q2014 alone. However, not all homeowners were lucky. There remains approximately 11% of all homeowners in an “underwater” or “negative equity” position today. These homeowners simply owe more in mortgage liens than what the market value currently is for tighter homes. These situations typically happen when there is a major decline in value such as stated above, or the homeowner has taken on more mortgage debt. It can also be both decline in value and increased mortgage debt.
“The CoreLogic analysis also indicates approximately 172,000 U.S. homes slipped into negative equity in the fourth quarter of 2014 from the third quarter 2014, increasing the total number of mortgaged residential properties with negative equity to 5.4 million, or 10.8 percent of all mortgaged properties. This compares to 5.2 million homes, or 10.4 percent, that were reported with negative equity in Q3 2014, a quarter-over-quarter increase of 3.3 percent. Compared to 6.6 million homes, or 13.4 percent, reported for Q4 2013, the number of underwater homes has decreased year over year by 1.2 million or 18.9 percent.” via RisMedia
Underwater Not All That Bad
“For the homes in negative equity status, the national aggregate value of negative equity was $349 billion at the end of Q4 2014. Negative equity value increased approximately $7 billion from $341.8 billion in Q3 2014 to $348.8 billion in Q4 2014. On a year-over-year basis, however, the value of negative equity declined overall from $403 billion in Q4 2013, representing a decrease of 13.4 percent in 12 months.” via RisMedia
As stated in the article above, short term the numbers were not as attractive, however the 12 month view was actually improved by over $403 billion. This indicates a slow, but positive trend in underwater mortgage loans.
For those who may be in a status of being “underwater” or in a “negative equity” position it may make sense for you to contact your Mortgage Advisor to see if you may be allegeable for a HARP Mortgage loan. Specifically if your home loan was purchased by one of the two major GSE’s Fannie Mae and Freddie Mac.
2014 Real Estate Highlights
Per RisMedia which states had the most negative equity?
“Nevada had the highest percentage of mortgaged properties in negative equity at 24.2 percent; followed by Florida (23.2 percent); Arizona (18.7 percent); Illinois (16.2 percent) and Rhode Island (15.8 percent). These top five states combined account for 31.7 percent of negative equity in the United States.”
And states had the most equity?
“Texas had the highest percentage of mortgaged residential properties in an equity position at 97.4 percent, followed by Alaska (97.2 percent), Montana (97.0 percent), Hawaii (96.3 percent) and North Dakota (96.2 percent).”
It’s been nearly 8 years since we started down this road and it’s certainly encouraging to see the data supporting the rebuilding of America’s real estate market. Slow and steady appreciation and recovery is something we are all for after our experiences.
If you would like to explore your mortgage options given the newest national data reviewed above, give us a call today at 425-822-7788 or you can email us at firstname.lastname@example.org