Image by Nick Youngson
Written by The Business Journal Staff
Central Valley mortgage holders continue to gain equity in their homes, according to a new report from real estate information firm CoreLogic.
For the second quarter of 2017 in Fresno, 13,803 or 9.1 percent of all residential properties with a mortgage were in negative equity (owing more than their home is worth), compared to 20,726 or 13.8 percent in the second quarter of 2016. The underwater mark was also lower than 16,895 properties, or 11.1 percent, in the first quarter of the year.
An additional 3,067 properties, or 2 percent, were in near-negative equity (less than 5 percent equity) in the second quarter compared with 3,848, or 2.6 percent, last year and 3,375, or 2.2 percent, in the first quarter of the year.
In the Visalia-Porterville region, 6.8 percent of mortgages, or 4,752 households, were underwater in the second quarter, compared to 7,229, or 10.4 percent, a year ago and 5,316, or 7.6 percent, in the first quarter.
An additional 1,366 properties, or 2 percent, were in near-negative equity (less than 5 percent equity) in the second quarter, compared with 1,788, or 2.6 percent, last year and 1,499, or 2.2 percent, in the first quarter.
Nationally, 2.8 million homes, or 5.4 percent of all mortgaged properties, were in negative equity in the second quarter. Year over year, negative equity decreased 21.9 percent.
“Over the last 12 months, approximately 750,000 borrowers achieved positive equity,” said Dr. Frank Nothaft, chief economist for CoreLogic. “This means that mortgage risk continues to decline and, given the continued strength in home prices, CoreLogic expects home equity to rise steadily over the next year.”