DataMarkets & Economy

CoreLogic report addresses LA home prices and negative equity

Rising home values shrinking negative equity across the country
  • The percentage of negative equity homes dropped to 7.1 percent in the U.S., or roughly 3.6 million homes.
  • Economists at CoreLogic believe home prices will rise another 5 percent over the year, which would free up another 700,000 residential properties from negative equity.
  • Los Angeles ranked no. 4 in the top five metros with highest percentage of residences with equity in the second quarter.

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CoreLogic's quarterly equity report shows 548,000 residential properties in the U.S. regaining equity in the second quarter of 2016, while the total number of mortgaged residential properties with equity sat at 47.2 million. Of the 47.2 million mortgaged residential properties, 17 percent (8.7 million) were considered under-equitied, the report shows. This percentage of borrowers has less than 20 percent home equity. "Home value gains have played a large part in restoring home equity," CoreLogic Chief Economist Dr. Frank Nothaft wrote in the report. The CoreLogic Home Price Index showed 5.2 percent growth through June. Dr. Nothaft credits home price growth with helping the number of negative equity homeowners to drop by 850,000 in the second quarter from the previous year. There is an even smaller percentage of near-negative equity properties. Near-negative equity refers to homes with less than 5 percent equity. Only 1.9 percent of properties are in this category, but t...