CoreLogic reported This Week in Real Estate that home equity grew by more than $700 billion dollars when comparing Q3 2016 to the same time period in 2015 and nearly 94% of all properties with a mortgage have positive equity. Below are a few highlights from the first week of December that influence our business:
* Home Equity Increased $726 Billion in the Third Quarter Compared With a Year Ago. U.S. homeowners with mortgages (roughly 63% of all homeowners) saw their equity increase by a total of $227 billion in Q3 2016 compared with the previous quarter, an increase of 3.1%. Additionally, 384,000 borrowers moved out of negative equity, increasing the percentage of homes with positive equity to 93.7 percent of all mortgaged properties, or approximately 47.9 million homes. Year-over-year, home equity grew by $726 billion, representing an increase of 10.8 percent in Q3 2016 compared to Q3 2015. In Q3 2016, the total number of mortgage residential properties with negative equity stood at 3.2 million, or 6.2% of all homes with a mortgage. This is a decrease of 10.7 percent quarter over quarter from 3.6 million homes or 7.1% or mortgage properties, in Q2 2016 and a decrease of 24.1% year-over-year from 4.2 million homes, or 8.4% of mortgaged properties, in Q3 2015. “Home equity rose by $12,500 for the average homeowner over the last four quarters,” said Dr. Frank Nothaft, chief economist at CoreLogic. “There was wide geographic variation with homeowners in California, Oregon and Washington gaining an average of at least $25,000 in home equity wealth.”
Full Story… http://www.corelogic.com/about-us/news/corelogic-reports-home-equity-increased-726-billion-dollars-in-the-third-quarter-2016.aspx
* Suburbs Outstrip Cities in Population Growth, Study Finds. Big cities may be getting all the attention, but the suburbs are holding their own in the battle for population and young earners. That is the thrust of a study of population trends and housing set to be released Monday by the Urban Land Institute’s Terwilliger Center for Housing. Property developers and urban-policy experts have trumpeted the influx of young, affluent professionals into big central cities in recent years. The shift has transformed downtown areas, sparking a historic boom in luxury-apartment construction and retail development. But research shows that suburbs are continuing to outstrip downtowns in overall population growth, diversity and even younger residents. The suburban areas surrounding the 50 largest metropolitan areas make up 79% of the population of those areas but accounted for 91% of population growth over the past 15 years, according to the study. What’s more, three-quarters of people age 25 – 34 in these metro areas live in suburbs.
Full Story… http://www.realtor.com/news/trends/suburbs-outstrip-cities-in-population-growth-study-finds/
* Home Renovation Projects With The Best ROI. The top five projects to prioritize when it comes to the best return on investments are: replacing the entry door, installing a new fireplace, remodeling the kitchen, converting the attic into a bedroom, and replacing the exterior siding. When it comes to house sales and particular rooms, the kitchen is often the room that will make or break a sale. Kitchen projects that are budgeted between 6 – 10 percent of the total home value will see the highest ROI. Putting your finances into kitchen upgrades is a worthwhile endeavor when it comes to optimizing your home for selling purposes.
Full Story… http://blog.rismedia.com/2016/home-renovation-projects-best-roi/
Have a productive week.