As the economy strengthens, home values continue to appreciate, and that means homeowners are raking in the equity.
A report released Thursday by data analytics provider CoreLogic showed that home equity rose 12.3% year-over-year in the second quarter of 2018, meaning that the average homeowner saw their equity increase by $16,153 in one year’s time.
Home equity increased in almost every state, according to the report, with the western states showing the greatest gains.
California led the charge with an average gain of $48,800, followed by Washington with $41,100 and Hawaii with $29,600.
The report also looked at mortgaged homes with negative equity to determine how many properties in the U.S. are currently underwater, with homeowners owing more than the home is worth.
In the second quarter of 2018, it showed that negative equity fell 9%, so that just 4.3% of all mortgaged properties are upside down. In the fourth quarter of 2009, negative equity peaked at 26%.
CoreLogic Chief Economist Frank Nothaft said Q2’s totals mean aggregate home equity gains now total $1 trillion, and that consumers will likely funnel this money back into the economy.
“This wealth gain will support additional consumption spending and home improvement expenditures in coming years,” Nothaft said.
CoreLogic President and CEO Frank Martell said low inventory is contributing to price appreciation.
“Negative equity levels continue to drop across the U.S. with the biggest declines in areas with strong price appreciation,” Martell said. “Further, the relatively low level of shadow inventory contributes to the chronic shortage of housing supply and price increases in many markets.”
For a state-by-state breakdown, check out the two images below. Click to enlarge.
By Elliot Njus | The Oregonian/OregonLive | Posted August 09, 2018 at 06:00 AM | Updated August 09, 2018 at 08:19 AM
A home for sale in Northeast Portland. (Elliot Njus/Staff)
Portland’s run of rapidly rising home prices is slowing down — but it’s not stopping.
Of nearly 70 neighborhoods analyzed by The Oregonian/OregonLive using sale data from the Regional Multiple Listing Service, all but 10 saw the median price rise for homes sold in year’s second quarter compared with a year earlier.
The 10 exceptions include neighborhoods that were among the busiest during the Portland metro’s hot streak.
Together, they saw the median price fall just an average of 3 percent.
That doesn’t necessarily mean homes are losing value — the shift could be the result of slower sales at the highest price tier. But it could also be a sign homesellers are losing leverage over buyers.
Here are the 10 neighborhoods where the median price fell in the second quarter.
— Elliot Njus and Mark Friesen
1. Sellwood-Moreland/Richmond, Portland
In the 97202 ZIP code, there were 170 sales. Homes spent an average of 27 days on the market, and the median sale price was $525,500, down 10.2 percent from $585,000 a year earlier. More on this neighborhood.
2. Old Town Chinatown/Pearl District, Portland
In the 97209 ZIP code, there were 98 sales. Homes spent an average of 46 days on the market, and the median sale price was $432,500, down 6 percent from $460,000 a year earlier. More on this neighborhood.
In the 97071 ZIP code, there were 102 sales. Homes spent an average of 45 days on the market and the median sales price was $252,500, down 4.9 percent from $265,500 a year earlier. More on this neighborhood.
4. Felida, Vancouver
In the 98685 ZIP code, there were 148 sales. Homes spent an average of 27 days on the market, and the median sales price was $389,500, down 3.3 percent from $403,000 a year earlier. More on this neighborhood.
5. Cedar Hills/Raleigh Hills/Sylvan, Portland
In the 97225 ZIP code, there were 108 sales. Homes spent an average of 30 days on the market, and the median sale price was $535,950, down 2.2 percent from $547,750 a year earlier. More on this neighborhood.
6. Central Beaverton
In the 97005 ZIP code, there were 83 sales. Homes spent an average of 18 days on the market, and the median sales price was $345,000, down 1.4 percent from $350,000 a year earlier. More on this neighborhood.
7. Northwest District, Portland
In the 97210 ZIP code, there were 60 sales. Homes spent an average of 53 days on the market, and the median sale price was $555,000, down 1.2 percent from $562,000 a year earlier. More on this neighborhood.
8. Foster-Powell/Woodstock, Portland
In the 97206 ZIP code, there were 254 sales. Homes spent an average of 23 days on the market, and the median sale price was $399,000, down 0.7 percent from $402,000 a year earlier. More on this neighborhood.
9. St. Johns/Portsmouth, Portland
In the 97203 ZIP code, there were 150 sales. Homes spent an average of 22 days on the market, and the median sale price was $378,125, down 0.5 percent from $380,000 a year earlier. More on this neighborhood.
10. West Lake Oswego
In the 97035 ZIP code, there were 161 sales. Homes spent an average of 27 days on the market, and the median sale price was $510,000, down 0.2 percent from $511,000 a year earlier. More on this neighborhood.
The National Association of Realtors reported that their Pending Home Sales index reflected the fifth month in a row of declining home sales on an annualized basis. Five months of declining pending home sales indicate more than a seasonal flutter.
As with others, I look around and listen to brokerage firms in the Denver area, as well as in other areas. What I’ve heard is that even sky-high markets like Seattle and Denver are seeing increased inventory and a decrease in the aggressiveness of buyers in mid- to upper-price ranges regarding multi-offer situations. We’ve read about this same situation in other markets as well – declining home sale units and increased inventory. The Real Deal and other publications, for instance, are reporting this about the New York City market.
The house designed by the firm of Foulkes and Hogue in 1913 for Dr. Ami Nichols is a prime example of Colonial Revival architecture in Portland. Well maintained at 1961 SW Vista Avenue, the Nichols House is an anchor for the other excellent Colonial Revival houses in its immediate neighborhood. In most aspects, the plan and façade are symmetrical. There is a hipped central roof and a kitchen wing to the rear. A large portico with balcony faces east toward the city, and it is supported by four Ionic columns, a design repeated in the corner pilasters. The house’s fine cornice is supported by modillions, and the entablature is dignified by egg-and-dart molding, all accomplished with unparalleled craftsmanship. The details extend to the recessed entrance porch and balcony above. At the entrance level, concave niches with a shell motif at the top align on either side of the entrance door. The main floor windows are unusual, with 1/1 panes and a transom light above. Quality of detailing is also found in the interior, where Ionic column theme is repeated in the large entrance hall. Further Colonial Revival characteristics are seen in the main stair, the built-in dining room buffet, and the fireplaces.
Classic Homes of Portland, Oregon 1850-1950, William J. Hawkins, III, and William F. Willingham
If the time has come to get a new roof for your home, you might like to consider the option of metal roofing. This important improvement project is something most long-time homeowners will eventually have to undertake, and choosing the proper roofing material should not be taken lightly. A functioning roof will protect your home from harsh outdoor elements like rain and snow and ensure its structural integrity.
Asphalt shingles are common, but the one type of covering that is catching the eye of an increasing number of homeowners is metal roofing. “Metal roofing is gaining in popularity,” reports Todd Miller, president of Isaiah Industries in Piqua, OH. It had a 14% market share in 2016, up from 11% the year before, according to FW Dodge. Only asphalt shingles outpace metal in the remodeling market.
In terms of style and utility, metal roofing gives any other material a run for its money, but does it suit your home (and budget)? Take a look at the best and worst things about metal roofing before you commit to it.
Pro: Metal roofing lasts 50 years—or longer
Metal roofs are by far one of the most durable, typically lasting 50 years or more, says Andrew Hecox, owner of Air Capital Roofing and Remodeling in Wichita, KS.
“Rubber and asphalt shingles are fine for 15 to 20 years, but they’ll deteriorate over time, due to weather, wind, heat, insects, and rodents,” says Cedric Stewart, a real estate agent with Keller Williams Capital Properties in Washington, DC. And metal won’t corrode, crack, or catch sparks and ignite into flames from a lightning strike.
“Metal roofing also doesn’t need periodic costly maintenance, like other materials,” says Lonnie Hagen of Accent Roofing and Construction in Dallas.
Con: It’s noisy
The pitter-patter of raindrops may be soothing for some homeowners, but on a metal roof, the noise factor can be a serious drawback. The good news is that there are ways to mitigate the sound—but you’ll have to pony up. Materials can be installed to reduce the drumming effect for an additional fee.
Con: Metal costs more
“Metal roofs can cost three times more than other materials,” says Hagen. According to HomeAdvisor, the average cost of installing asphalt shingles is $3,700, while metal roofing costs around $7,795 to install.
Pro: It’s rather stylish
Not every metal roof has to be boring brown or ho-hum gray. In fact, you have nearly the entire rainbow to choose from. You can also order metal roofing to look like wood shakes, slate, tile, or standard fiberglass shingles, says Miller. “This allows owners to match their home’s architectural style,” he notes.
Con: Extreme weather can damage metal
If you live in a place with extreme weather, you should know that metal roofs are hail-resistant—but a violent storm can still dent them, says Hecox. Your roof will protect your home, but insurance companies may not compensate you for the repair of cosmetic damage, he adds. Aluminum or copper, while stylish, are soft metals that are more likely to experience denting.
And if you’re thinking of installing solar panels, having a metal roof is recommended, says Reba Haas, a real estate agent in Seattle. “Metal is the best material to have underneath panels, because it’s lighter than asphalt construction,” Haas says.
Green builders or eco-friendly homeowners will be happy to know that metal roofs contain anywhere from 25% to 95% of recycled materials and are also 100% recyclable, Hagen says.
Con: It might not fit in
You love the look, but your neighbors … not so much. There are newer home subdivisions and homeowners’ associations (HOA) that don’t allow this type of roof in their communities, so check your HOA’s bylines before you start the project.
Pro: Metal roofing is easy to install
Don’t be alarmed if your contractor does a happy dance when you say you’ve chosen metal roofing. “[It’s] lightweight and comes in panels, which can be cut to exact dimensions—all of which make installation easier than other materials,” says Hecox. And you can sometimes place metal over existing shingles, which cuts down on the costs in time and labor of removing the old roofing, he adds. Metal is also easier to install on a steep pitched roof, again, because the panels are larger than individual shingles, says Haas. That versatility makes it ideal for houses of all shapes and sizes.
The information is not guaranteed and a prospective buyer should verify information with the appropriate party. Windermere Stellar and MJ Steen Group assume no liability for any errors in this information.