A recent article was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.”
The article then goes on to soften that stance but we want to bring better clarity to the equity situation. Since California is the 6th highest state in the Country with least amount of homes with negative equity, it doesn’t affect us but is still something good to keep an eye on.
A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)
If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”
Here is a map showing the percentage of homes in each state which currently have significant equity:
If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, fill out this easy form and I will send you a detailed report on what your home is worth. If you prefer to sit down together, call or email.