Equity Homeowners have Purchase Power.
93.9% of Homes in the US Have Positive Equity – 78.8% of US Homeowners have Significant Equity in their homes
CoreLogic’s latest Equity Report revealed that ninety-one thousand residential properties regained equity in 1st quarter of 2017. The outlook for 2017 remains positive as well, as an additional 600,000 properties will regain equity if home prices rise another 5% this year.
The study also revealed that:
- Roughly 63% of all homeowners have seen their equity increase since Q1 2016
- The average homeowner gained about $14,000 in equity between Q1 2016 and Q1 2017
- Only 1.6% of residential properties are near-negative equity
Of the 93.9% of homeowners with positive equity in the US, 78.8% have significant equity (defined as more than 20%). This means that nearly three out of four homeowners with a mortgage could use the equity in their current home for major purchases.
Frank Martell, President & CEO of CoreLogic, believes this is great news. He explained: “Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.”
The map below shows the percentage of homes with a mortgage by state, that have significant equity. And those equity homeowners have purchase power.
When homeowners have a lot of equity in their homes, they can use that equity to make serious purchases. This may be remodeling their existing home, buying a new car or taking that expensive vacation they always dreamed of.
Mortgage companies looking for new business should be marketing to these homeowners. They need to make their company name is front and forward so when the time comes for that homeowner to want some ready cash, they know who to call.
Dataman Group in Boca Raton FL, a marketing company specializing in lead generation lists for the mortgage industry, provides lists of homeowners with equity in their homes. They can be reached at 800.771.3282