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NATIONAL SNAPSHOT
Regional
SLOWING GROWTH, SMALLER GAINS
How did Q3 fare after Q2 2018's nearly $1 trillion year-over-year gain in equity?
By Molly Boesel
e amount of equity in mortgaged real
estate increased by about $775 billion in Q 3
2018 from Q 3 2017, an annual increase of 9.4
percent, according to the CoreLogic Equity
Report. e third quarter's home equity gain
was lower than the nearly $1 trillion year-over-
year gain in Q2 2018, which reflects slowing
price growth.
e nationwide negative equity share
for Q 3 2018 was 4.1 percent of all homes
with a mortgage, more than 20 percentage
points lower than the peak negative equity
share—26 percent—recorded in Q 4 2009.
Over the past 12 months, 81,000 borrowers moved into positive
equity.
Figure 1 shows the 25 states with the largest percentage-point de-
creases in the negative equity share from the previous year. Nevada's
4.3-percentage-point decrease in negative eq-
uity between Q 3 2017 and Q 3 2018 represent-
ed the nation's largest year-over-year decline,
and the drop from a high of 72.7 percent in Q1
2010 to 4.7 percent in Q 3 2018 represented the
largest decline from the peak.
Figure 2 shows the average dollar amount
of negative equity and the negative equity
share for 10 large Core-Based Statistical
Areas (CBSAs) in Q 3 2018. e average
amount of negative equity is inversely related
to the negative equity share. For example, in
this group of CBSAs, San Francisco has the
largest average amount of negative equity, but the negative equity
share is only 0.6 percent. Miami has the smallest average amount of
negative equity but has a negative equity share of 11.2 percent, which
is nearly three times the national rate.
STATS AT A GLANCE
National share of homes with
negative equity for Q3 2018 was 4.1
percent.
81,000 borrowers moved into positive
equity from Q3 2017 to Q3 2018.
Nevada saw the largest improvement
in the negative equity share over
the past year, falling 4.3 percentage
points.
