Boston Real Estate Equity
Massachusetts ranks in the top tier for home equity gains.
That 19.6% increase represents a combined increase of $1.9 trillion or about $33,400 per borrower, the report noted.
What was the average net equity gain for Massachusetts residents?
The avg Massachusetts home owner so a gain of 49k year-over-year according to CoreLogic report
The development has helped stave off foreclosures because homeowners can tap into that equity and sell their home, unlike the 2008 financial crisis when many homeowners found themselves underwater in their mortgage. Massachusetts homes experienced some of the highest equity increases over the past 12 months, with an average jump of $49,000.
Nearly three-quarters of survey respondents nationwide (74%) said they are not concerned that they’ll owe more than the house is worth over the next five years.
“Homeowner equity has more than doubled over the past decade and become a crucial buffer for many weathering the challenges of the pandemic,” CoreLogic President and CEO Frank Martell said in a press release. “These gains have become an important financial tool and boosted consumer confidence in the U.S. housing market, especially for older homeowners and baby boomers who’ve experienced years of price appreciation.”
Dr. Frank Nothaft, chief economist for CoreLogic, said the CoreLogic Home Price Index experienced an increase of 11.4% over the past year, resulting in pushing the average level of equity up to $216,000.
“This reduces the likelihood for a large numbers of distressed sales of homeowners to emerge from forbearance later in the year,” Nothaft said.
What is the number of homes underwater in 2021?
The report added that in the first quarter of 2021, the number of underwater homes dropped by 7% to 1.4 million. That makes up 2.6% of all properties with a mortgage.
Looking forward, a 5% increase in home prices would mean 195,000 homes would regain equity, while a 5% decrease would result in another 260,000 sliding underwater.
Boston Real Estate Equity
It doesn’t seem that long ago that I was reporting that individuals were walking away from their homes that were underwater for “financial reasons.” Now it appears with these low-interest rates it would be wise to stay in your home for – financial reasons...
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Ford Realty – Boston Real Estate Google Reviews 2019
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