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August 2018   Volume 44, Number 8      
 

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Homeowners Gain $1 Trillion in Home Equity

In the past year, homeowners gained $1 trillion in home equity. Despite these gains, many homeowners with mortgages remain underwater on their home loans.

The average borrower gained $16,300 in home equity from 2017 to 2018, according to CoreLogic. Home equity rose 13.3 percent from last year. Collectively, this adds up to $1.01 trillion, the largest gain in four years.

But those big gains are not enough for 2.5 million borrowers with mortgages that are still underwater. A total of 4.7 percent of homeowners with mortgages owe more on their homes than the homes are currently worth, though that’s an improvement from last year, when 3 million borrowers were underwater.

Gains differ based on location. Higher purchase demand, and strong economic growth are expected to fuel these equity trends into the future.

Listings move quickly and many sell above list price. Bidding wars are now the norm. According to Trulia, it took just 64 days to sell the average home in April. The National Association of Realtors reports homes are going to contract in only 26 days.

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In this issue:

Why Buying a Home in 2018 Could be a Smart Move

Five Fastest Selling Cities for Residential Real Estate

Almost Half of Freddie Mac Mortgages in Q1 Borrowed by First-Time Home Buyers

Slow Sales at Home Depot Signal Warning for Housing

Homeowners Gain $1 Trillion in Home Equity

Homeownership Trends Upward as Renter Households Decline

Mortgage Rates Reach Seven-Year High

New Home Prices Decline to 12-Month Low

The Best Cities for Housing Market Purchasing Power

Helping Clients Celebrate Their New Home Purchase on Social Media

 


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