Home values are on strong footing across the nation, according to the latest Homeowner Equity Report from CoreLogic, but Florida continues to have a higher than average number of homes that are upside down.
According to this latest quarterly report, homeowners around the country have enjoyed an average 4.8 percent increase in their home values since the second quarter of 2018. Roughly 63 percent of homes in the country saw their home values rise, by a collective $427 BILLION.
"We've seen a lot of local homeowners finally turn the corner on home debt taken out during the boom," said Ron Wysocarski, CEO and Broker of Wyse Home Team Realty. "But prices have been climbing fairly fast in the last couple years, so we're also seeing people pushing their borrowing limits again to keep up with the market values."
About 2 million homes, or about 3.8 percent of properties with mortgage debt, remain under water with values that fall below the amount of debt owed on the properties, the report found. All told, the country has about $302 Billion in negative equity. Although that may sound like a lot, we've come a long way in the last decade. When the situation was at its worst at the end of 2009, CoreLogic's reporting showed roughly 26 percent of mortgaged properties were under water.
"Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started," said Frank Nothaft, Chief Economist for CoreLogic.
The CoreLogic report found that Florida homeowners gained an average $8,000 in home equity over the last year. It's a fairly average number when stacked against the equity gains homoeowners in other states reaped. North Dakota fell to the bottom of the list, as homeowners there lost about $5,000 in equity. Meanwhile, Idaho homeowners took the top of the list, gaining about $22,000 in home equity over the last year.
Credit: Graphic by CoreLogic
A look at home equity figures in some of nations largest cities tell a different story though. Maimi homeowners are hurting most among the cities CoreLogic compared, with about 9.5 percent of homes there currently under water. The Chicago market comes in second with about 7.8 percent of mortgaged homes have negative equity. Conversely, San Francisco and Los Angeles rounded out the bottom of the list with only 0.6 and 1.4 percent of mortgaged homes being upside down, even though owners in California only saw their equity increase an average $2,000 over the last year.
Florida carries a higher than average share of the nation's negative equity, with our under water homes amounting to 5.6 percent of the $302 Billion in negative equity, the report said.
Credit: Graphic by CoreLogic
Home values remain high locally, but home sales have been slowing across the Volusia and Flagler County areas. As of the end of August, total sales year-to-date were slightly below what they were during the first 8 months of 2018.
CoreLogic's latest equity report, along with our monthly market reports can help give Daytona Beach area buyers and sellers insight into the current market conditions and what might be ahead. Give us a call anytime to discuss how these conditions could affect your home sale or purchase. We're here to help you make good choices that will ensure you can maintain a position of equity on your home for the years to come!