• In the entire nine-county Bay Area, 83 percent of the total 1.03 million mortgages had a minimum 20 percent equity as of June of this year.
  • There was a 16 percent increase in loans to $33 billion as of June 30, 2016, a 78 percent increase since the post-recession low in 2010.

Larkspur/Behzad Zandinejad

With the high prices in the nine-county Bay Area, more homeowners are taking advantage of available credit, according to a new report. On a year-over-year basis in June, there was a 16 percent increase in loans to $33 billion from the 71 credit unions headquartered in the Bay Area, according to the California Credit Union League.

As of June 30, there was a 5 percent increase annually in the number of new members, which was a record high for the area peaking above 2.5 million.

In the second quarter of 2016, homeowners were increasingly heading into Home Equity Lines of Credit (HELOCs), home equity loans (second mortgages) and cash-out refinance mortgages, the report shows. In home equity loans specifically, there was an 11 percent annual increase, reaching an outstanding $3.9 billion, or a 41 percent increase from the post-recession low.

“The local surge in home-equity lending and cash-out refis reflects a strong national trend in homeowners increasingly remodeling their homes and enhancing their properties,” said Dwight Johnston, chief economist for the California Credit Union League.

In the entire San Francisco-Oakland-Hayward metro area, 83 percent of the total 1.03 million mortgages had a minimum 20 percent equity as of June of this year. Home equity loans, or second mortgages specifically, increased 11 percent, to $3.9 billion. This marks a record dollar amount and a whopping 41 percent rise from the 2013 low of $2.7 billion, according to the report.

“As more of these homeowners see the light of day with values rising, we’ll see more of this remodeling trend,” Johnston said. “Pulling out home equity seems to have legs and is here to stay, especially since job growth across California remains strong and is supporting household stability.”

Credit card lending increased 4 percent as well, hitting a record $1.2 billion.

Email Kimberly Manning

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription