A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” The article then goes on to soften that stance, but we want to bring better clarity to the equity situation.
A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)
CoreLogic started reporting homeowner equity data in the first quarter of 2010. At that time, the equity picture for homeowners was rather bleak in the United States. Since then, many borrowers have regained equity in their homes, and the outstanding balance on the majority of mortgages in this country are now equal to or in a positive position when compared to their loan balance.
If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”
Here is a map showing the percentage of homes in each state which currently have significant equity:
If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, maybe it is time to get together with a Real Estate Advisor | REALTOR® to determine if now is the time to list your home.
If you would like to learn more about this topic or discuss the possibility of listing your home, complete the GET IN TOUCH form on this page and we will get in touch with you as soon as possible.
Content credit to Keeping Current Matters at www.simplifyingthemarket.com.