WASHINGTON ? Negative equity and underwater homeowners are frequently in the headlines, but what about positive equity in Americans? homes?Is there much of it left after the wealth-killing recession and real estate bust? Where is it? Who?s got equity? You might be surprised.
A new study, conducted by mortgage and real-estate data firm CoreLogic for this column, found that there are substantial reserves of positive equity across the country.
CoreLogic has the largest database on home loans ? 42 million active accounts, more than 80 percent of all existing mortgages ? with information supplied regularly by lenders and servicers.
First some basics on equity. The Federal Reserve estimates that at the end of June, Americans held $6.2 trillion in equity in their homes. This was down sharply from its high mark of $13.2 trillion in 2005. Roughly one of every three homes is mortgage-free, according to federal and industry estimates.
Among owners who have mortgages, according to CoreLogic, 48.5 percent of them have at least 25 percent equity stakes in their properties. Roughly a quarter of owners with mortgages ? 24.6 percent ? have more than 50 percent equity.
via Seattle Times
It is great news to have this highlighted in the press. I have always focused on helping people who have equity in their homes. That doesn?t mean we don?t help friends that are underwater. We gladly help those who need help in any situation.
There is enough business for everyone out here in this economy and not every home is underwater as some may think.?
This brought up a great question a client had about how the short sales and reo?s around his neighborhood could effect the comparable on his home. Click here to watch that video.?
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Posted via Seattle Real Estate-Seattle Homes For Sale
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