Home Equity Levels Bounce Back in America’s Largest Cities
As home prices continue to rise, the number of underwater borrowers has fallen over the years significantly to the point where 92 percent of all mortgaged properties are in positive equity territory, according to CoreLogic.
In the first quarter of this year, 46.7 million properties had positive equity levels, while 4 million borrowers were underwater, or owed more on their mortgages than their homes are worth, according to CoreLogic. The factors that can lead to negative equity include a decline in a home’s value, an increase in mortgage debt, or both factors combined, CoreLogic says.
Out of 176 cities that CoreLogic tracks, San Francisco topped those with the highest percentage of homes in positive equity territory in the first quarter of 2016. The home equity positions of some of the 10 biggest cities have seen dramatic improvements when comparing the first quarter of 2010 to the first quarter of 2016.
Las Vegas’ percentage of homes in positive equity territory grew 57.7 percent in that period, but it’s still among the 10 cities with the lowest equity positions that CoreLogic tracked in the first quarter of this year.
Check out home equity levels in various cities across the U.S. in the infographic below: