Here’s a gasp of relief:
91% of all U.S. mortgaged properties are now in a positive equity situation.
Better yet, 75.9% now have 20% or greater equity (“Significant Equity”). 548,000 households got back in the black in the second quarter of 2016. And Washington’s statistics are even better at 85.5%!
A Few Reasons for the Low Tide
- The most immediate cause for the surge back to positive home equity is the current rise in home prices.
- It seems to us that removing homes and households that were ultimately lost in the recession also shifts current statistics towards the positive, even if for a grim reason.
- We also surmise that stricter regulation of lending is helping to lower sea level on homeowner equity by preventing more potential buyers from acquiring homes they really can’t afford.
- The fact that household incomes have risen for the first time in a long time must help too.