More Home Owners Recapture Long-Lost Equity
September 11, 2013
Two recent housing reports are confirming the same picture: Home owners are rapidly recapturing the equity they had lost in the last decade.
A sharp rise in home prices helped 2.5 million more mortgage borrowers eke out from being underwater in the second quarter, according to the latest report from CoreLogic. By the end of June, 14.5 percent of mortgage borrowers remained underwater on their loans, compared to 19.7 percent at the end of the first quarter. In late 2009, that percentage stood at 26 percent.
Last week, RealtyTrac reported that since May, 600,000 home owners had emerged from being “deeply underwater,” owing more on their home than it is currently worth.
Mark Fleming, CoreLogic’s chief economist, says the pace of home price increases is expected to steady in the coming months, which likely will curtail the number of home owners emerging from underwater status.
CoreLogic shows the following states had the highest percentage of mortgage borrowers still underwater in the second quarter:
- Nevada: 36.4%
- Florida: 31.5%
- Arizona: 24.7%
- Michigan: 22.5%
- Georgia: 20.7%
Broken down on a metro level, Miami had the highest percentage of home owners who are underwater at 36.5 percent, followed by Tampa, Fla. (33.8%); Phoenix (25.6%); Riverside, Calif. (24.8%); and Warren, Mich. (24.3%).
Source: “2.5 Million Mortgage Borrowers No Longer Underwater,” CNNMoney (Sept. 10, 2013) and “CoreLogic Confirms Improving Equity Picture, but Pace may Change,” Mortgage News Daily (Sept. 10, 2013)
Updated: November 23, 2020