U.S. homeowners gained or regained more than $1 trillion in equity over the year that ended on June 30, 2014. Less homes underwater according to Core-Logic’s 2nd quarter 2014 analysis, 44 million homes in the country now have positive equity, a gain of 950,000 homes during the quarter.
The number homes which are still “upside-down” or “underwater,” that is the owner owes more on the mortgage than the market value of the home, is now 5.3 million or 10 percent of all homes with a mortgage. In Minnesota, just 7.8% of homes, and Wisconsin 10.9%.
In the preceding quarter (Q1) there was a negative equity share of 12.7 percent or 6.3 million homes and in the second quarter of 2013 there were 7.2 million homes or 14.9 percent that were underwater. This is a year-over-year decline of 1,962,435 or 4.2 percent.
Regaining equity is very important, as it allows many more people to list and sell their existing homes, moving up (or down) to something else, and others to refinance and save on their current homes loans – especially those who want to refinance, but did not qualify for programs like a HARP Refinance.