Great news for homeowners: rising home prices are rising equity levels. Single-family homes and condominiums sales volume has reached the highest level since 2006 during the same first three quarters period, according to RealtyTrac. The highest price gain in eight years was reaped by homeowners who sold during the third quarter, bringing in an average of 17% over their purchase price. Read more about cashing in on home equity below.
The group of homeowners that RealtyTrac categorizes as “equity rich,” meaning they have at least 50 percent equity in their homes, has been increasing over all, said Daren Blomquist, a vice president of RealtyTrac.
But in the third quarter, the share declined from the quarter before, to 19.2 percent of all homeowners with a mortgage from 19.6 percent. The group with less than 50 percent equity, however, grew, while the ranks of those with negative equity shrank.
“What that tells me,” Mr. Blomquist said, “is that people are either selling and moving into a bigger home, or refinancing it and leveraging some of that equity, so they don’t have as much equity in the home as they did before.”
Refinancing activity in general has risen in recent months, as interest rates have remained low. In September, refinanced loans represented 42 percent of lenders’ loan volume, according to Ellie Mae, a software provider for the mortgage industry. That was a 5 percent increase over August, and the highest level since May.
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SRC: Read about the mid- to high-end housing markets equity at: www.nytimes.com/2015/11/15/realestate/cashing-in-on-home-equity.html?emc=edit_tnt_20151114&nlid=67237800&tntemail0=y&_r=1