About 548,000 U.S. homeowners regained equity in the second quarter, bringing the percentage of homes with positive equity to 92.9% of all mortgaged properties, or approximately 47.2 million homes, according to CoreLogic.
Nationwide, home equity increased by $646 billion, or 9.9%, from the end of the second quarter of 2015 to the end of the second quarter of 2016.
Although about 3.6 million homes – or 7.1% of all homes with a mortgage – remained in negative equity, this was, nevertheless, a decrease of 13.2% compared with 4.2 million homes, or 8.2%, in the first quarter and a decrease of 19% compared with 4.5 million homes, or 8.9%, in the second quarter of 2015.
As of the end of the second quarter, the national aggregate value of negative equity was $284 billion, a decrease of approximately $20.4 billion, or 6.7%, from $305 billion in the first quarter and a decrease of 9.5% compared with the second quarter of 2015.
Of the more than 50 million homes with a mortgage, approximately 8.6 million, or 17%, have less than 20% equity (referred to as under-equitied) and approximately 965,000, or 1.9%, have less than 5% equity (referred to as near-negative equity), according to CoreLogic.
“We see home prices rising another five percent in the coming year based on the latest projected national CoreLogic Home Price Index,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Assuming this growth is uniform across the U.S., that should release an additional 700,000 homeowners from the scourge of negative equity.”
For more, including a breakdown by state, click here.