Homeowner equity surged again in the first quarter of 2017 by $766.4 billion or 11.2% since the first quarter of 2016. This number represents 63% of all homeowners. 
Equity for the first quarter of 2017 jumped by $171 billion from the last quarter of 2016.
As is customary, the first quarter usually shows positive growth, as it is when the buyers who were unsuccessful in the prior year return to the market in search of a home.
According to the CoreLogic report:
+ National share of homes with negative equity fell to 6.1% in Q1 2017.
+ All states saw a decrease in negative equity share over the past year.
+ Nevada saw the largest improvement in the negative equity share over the past year, falling 4.6% points.
+ The improvement in the negative equity has been national, with all states registering a year-over-year decrease.
Home equity is the largest source of homeowner wealth. The increase in home equity also supports consumer balance sheets, spending and the broader economy.
The CoreLogic report cites that 91,000 residential properties have regained equity in Q1 2017, bringing the number of mortgaged residential properties with equity to 48.2 million.
It is estimated that 3.1 million homes, or 6.1% of all residential properties with a mortgage, were still in negative equity at the end of the first quarter of 2017.
The average New Jersey home gained $7 million in home equity year-over-year as compared to the first quarter of 2016. Statewide, 10.2% of New Jersey homes have negative equity.
The top 5 states with mortgaged residential properties having the greatest percentage of negative equity are: Nevada, Florida, Illinois, New Jersey and Connecticut.
Nevada is notable for having the highest negative equity share in the nation. It is also the state with the largest drop in negative equity share in the past year, and the largest decrease from the peak negative equity share. Nevada’s 4.6-percentage-point decrease between Q1 2016 and Q1 2017 represented the nation’s largest year-over-year decline, and the drop from a high of 72.7% in Q1 2010 to 12.4% in Q1 2017 represented the largest decline from the peak.
According to CoreLogic, “The total number of mortgaged residential properties with negative equity decreased 3% from the fourth quarter to 3.1 million homes, or 6.1% of all mortgaged properties. This is a drop of 24% from 4.1 million homes in the first quarter last year.”
To read the entire report, click on this link.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.