The fiscal health of homeowners nationwide appears to be improving based upon the data published by CoreLogic. Homeowner equity has risen from the first quarter of 2019 to the second quarter of 2019, according to CoreLogic. The number of residential properties underwater (with a negative equity position) fell to 2 million homes or 3.8% of all mortgaged properties. This represents a decrease of 7% from the first quarter of 2019. Based upon numbers reported for the second quarter of 2018, negative equity fell 9% from 2.2 million homes.
Overall, home equity increased by 4.8% year-to-year at the end of the second quarter of 2019. This accounts for a collective gain of approximately $428 billion according to the same CoreLogic report, translating into an average increase of $4,900 in homeowner equity since the second quarter of 2018. In New Jersey, the percentage of homes with negative equity stands at 6% of all mortgages. But this is better than Connecticut, which stands at 8.5%. The metropolitan area that has gained the most over the course of the last year is Miami, which saw a 9.5% rise in homeowner equity.
Total Homeowner Equity
Total homeowner equity hit a record high of $6.3 trillion according to another report published by Black Knight.
Rental Surges Also Drives Up Prices
The unaffordability of housing is indirectly the result of a strong rental market and the shortage of new construction. Especially in the case of New Jersey, Manhattan seems to be driving values in New Jersey higher and higher as rents in August in Manhattan hit $4,272 a month on average. This makes Manhattan the most expensive place in the country to rent an apartment. Other cities in which rents are extremely high include San Francisco, where rents average $4,272 a month and Boston, where the average apartment rental is $3,545. The average rent in Los Angeles stands at $2,525 per month.
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.
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