Recent reports on Home Appreciation and Equity
The FHFA (Federal Housing Finance Agency) recently released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. The report showed that home prices rose 0.4% in July and 5% year over year. This was an acceleration from the previous report, which was reported at 4.8%. It’s logical to think that the FHFA report is running hotter than other home price index reports (like Case Shiller), as it covers homes with conforming loan limits, which doesn’t have to but likely represents lower-priced homes, which are in very high demand.
Also, Corelogic recently published their Homeowner Equity Insights report, showing an analysis of homeowner equity through second quarter 2019. The analysis looks specifically at U.S. homeowners with mortgages, which is approximately 63% of all properties.
Some insights from the report:
- Homeowner equity increased by $427.9 billion, up 4.8% year over year
- “Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started.”
- Negative equity fell 9% from 2.2 million homes, or 4.3% of all mortgaged properties, in the second quarter of 2018
With the combination of rising home appreciation, increase in homeowner’s equity and historically low rates, this may be a good time for consumers to be thinking about their next home purchase.
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