An estimated one million homeowners regained significant equity in 2015.
This is according to a report from CoreLogic, The report indicated the total number of mortgaged residential properties with equity at the end of 2015 was about 46.3 million, or a full 91.5% of all properties that also have a mortgage loan.
Nationally, borrower equity showed a year-over-year increase of $682 billion in the fourth quarter.
The same report indicated the number of upside down properties (negative equity) stood at 4.3 million, or about just 8.5% of all mortgaged properties – at the end of 2015, according to CoreLogic.
That’s a 19.1% decrease year over year, and great news for homeowners!
Of the estimated 50 million home with a mortgage, the survey found that about 9.5 million, or 18.9%, had less than 20% equity, and 1.2 million, or 2.3%, had less than 5%.
The number of homeowners with more than 20% equity is rising rapidly, according to CoreLogic. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and low mortgage interest rates are also factors.
Looking ahead in 2016, pretty much everyone is expecting home equity levels to continue to build, which is a good thing for the long-term health of the U.S. economy.