44 Million Americans Have Tappable Equity

Mike Sorohan msorohan@mba.org

September 10, 2018

Black Knight, Jacksonville, Fla., said despite slower home price growth, U.S. tappable equity surpassed $6 trillion for the first time, impacting 44 million homeowners with mortgages.

The company's monthly Mortgage Monitor report said tappable equity grew by $256 billion in the first quarter, bringing total growth for the year to $636 billion. Black Knight reported three times as much tappable equity available than at the bottom of the market in 2012.

Despite the growth, Black Knight noted a "noticeable slowing" in equity growth from the first through second quarters, largely attributed to slowing home price growth in some of the nation's most equity-rich locations and price segments. Black Knight Executive Vice President Ben Graboske noted though the second quarter is typically the strongest quarter for home price gains, this year's appreciation was just 2.7 percent, the lowest second quarter gain in five years, after coming off a five-year high for first quarter growth

"After the strongest Q1 rise in home prices in five years, momentum shifted in the second quarter," Graboske said. "Drilling down to a more localized geographic level, we see significant pullback in the rate of home price appreciation in the nation's 10 most equity-rich markets. This, in turn, pushed down overall equity growth nationwide."

Black Knight reported the top 10 housing markets accounted for more than 60 percent of tappable equity growth in first quarter, but due to slowing home price gains, that share fell to just 33 percent in the second quarter. Results for California stand out: whereas home price gains nationally were higher in the second quarter than the first, in California, the average home price gain slowed by 43 percent. In the most expensive areas of the state, average price gains saw an 80 percent quarterly decline.

Other report highlights:

--Total U.S. loan delinquency rate: 3.61 percent in Jul, a 3.35 percent decline from June.

--Total U.S. foreclosure pre-sale inventory rate: 0.57% in July, an 0.73% decline from June.

--States with highest percentage of non-current loans: Mississippi, Louisiana, Alabama, West Virginia, Indiana.

--States with lowest percentage of non-current loans: Colorado, Oregon, Idaho, North Dakota, Washingtont

--States with the highest percentage of seriously delinquent loans: Mississippi, Louisiana, Alabama, Florida, Arkansas.

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