Average Homeowner Gained $16,000 in Home Equity in 1 Year

Report shows equity continued its climb in Q2

money house

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.

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.

HE Chart

HE Chart

Posted on September 24, 2018 at 8:35 pm
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Portland-area real estate: 10 places where home prices are falling

By Elliot Njus | The Oregonian/OregonLive | Posted August 09, 2018 at 06:00 AM | Updated August 09, 2018 at 08:19 AM

Posted on August 14, 2018 at 12:00 am
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SW Portland Modern | $1,795,000

Posted on July 30, 2018 at 10:09 pm
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5350 NW Rubicon Lane

 

This estate is architecture at its visionary best: It engages, exhilarates and inspires. Casual daily living and lavish entertaining are embraced within this versatile residence. The fenced yard and gardens include a pool & spa, putting green, bocce court, water feature and outdoor dining area with a fireplace & built-in BBQ. This property is ideal for both formal and informal gatherings. Close to High Tech, Forest Park and NW Portland. For more information click here. 

Posted on June 6, 2018 at 12:19 am
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New on NW 23rd

Restoration Hardware recently opened an RH Baby & Child and RH Teen gallery on NW 23rd in the old RH space. For more information click here.

Posted on May 23, 2018 at 6:34 pm
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720 NW Warrenton

Posted on April 9, 2018 at 10:15 pm
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Market Update | Matthew Gardener

“Fourth Quarter home sales dropped by a modest 1.5% compared to the same period last year, with a total of 15,314 homes sold. Although sales were a mixed bag, I still contend that any drop in sales was due to low levels of available inventory rather than declining demand. The average home price in Oregon and SW Washington rose 7% year over year to $363,110. This is down 1.4% from the third quarter of 2017. This slowdown in price growth is likely due to buyers feeling priced out of the market.” 

  • Matthew Gardner, Windermere Chief Economist 
Posted on February 21, 2018 at 10:19 pm
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Perfectly Located | 0214 SW Sweeney


Posted on December 21, 2017 at 10:49 pm
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Your Next Home Could Run on Batteries

 | Oct 16, 2017

In the near future, your home could be battery operated.

This is especially true if you live in New York, California, Massachusetts, Hawaii, Vermont, Arizona or a growing roster of other states and municipalities experimenting with revamping their electrical grids for the 21st century.

You might not even know your lights are being kept on by the same chemical process that powers your smartphone, since the batteries could be tucked into what looks like a neighborhood junction box, or behind a fence in a substation. But now, thanks to efforts by startups and the utility companies they sell to (and sometimes battle), you might get one right inside your home.

The rise of these home batteries isn’t just a product of our collective obsession with new tech. Their adoption is being driven by a powerful need, says Ravi Manghani, of GTM Research: renewable energy.

Without batteries and other means of energy storage, the ability of utility companies to deliver power could eventually be threatened.

Solar power, especially, tends to generate electricity only at certain times—and it’s rarely in sync with a home’s needs. In some states, such as California and Arizona, there’s an overabundance of solar power in the middle of the day during cool times of the year, then a sudden crash in the evenings, when people get home and energy use spikes.

For utilities, it’s a headache. The price of electricity on interstate markets can go negative at certain times, forcing them to dump excess electricity or pay others to take it.

“This is not a long-term theoretical issue that might happen—this is now,” says Marc Romito, director of customer technology at Arizona Public Service, the state’s largest electric utility.

There’s something ruggedly individualistic and inherently American about having batteries in your home. They’re good for keeping power going in a disaster, as customers of the two biggest firms by sales volume in this field, Sonnen and Tesla, demonstrated in the aftermath of Hurricane Irma. And in combination with rooftop solar panels, they free people from total dependence on the grid—a kind of energy cable-cutting that wonks call “grid defection.

Solar power tends to generate electricity only at certain times and is rarely in sync with homes’ needs.
Solar power tends to generate electricity only at certain times and is rarely in sync with homes’ needs.

The very real possibility of grid defection is changing the power dynamics between utilities and their customers.

Last week, real-estate developer Mandalay Homes announced a plan to build up to 4,000 ultra energy-efficient homes—including 2,900 in Prescott, Arizona—that will feature 8 kilowatt-hour batteries from German maker Sonnen. It could eventually be the biggest home energy-storage project in the U.S., says Blake Richetta, senior vice president at Sonnen.

The homes, which will come with the Sonnen battery preinstalled, will be part of a Sonnen-managed “virtual power plant for demand response” that could allow the houses to stabilize the grid, lower its carbon footprint and decrease peak load, says Mr. Richetta.

An exterior shot of the Mandalay Homes development in Prescott, AZ.

While the Mandalay Homes project is still in the blueprint stage, with only one test home built so far, this kind of radical, battery-enabled rethink of the grid is already happening in Vermont.

In partnership with Tesla Energy, Green Mountain Power is offering 2,000 of its customers the opportunity to have a Tesla Powerwall in their home for $15 a month. The 13.5 kilowatt-hour batteries retail for $5,500, but the utility can afford to put them in homes because they help the company save on other grid infrastructure, says Mary Powell, GMP’s chief executive and president. “Peaker plants,” for instance, are fired up only when the grid is strained to maximum capacity, saving the utility from using one of its most expensive forms of electricity.

GMP also uses batteries from Sonnen, SimpliPhi and Sunverge. Ms. Powell says the larger battle for home battery storage will be over how each of these companies—and dozens of others—differentiates itself, selling different size batteries adapted for different uses in homes, businesses and utilities.

Arizona Public Service’s Mr. Romito says not all of these batteries are created equal—though he wouldn’t name names.

The biggest challenge to home battery storage remains economics. Utilities’ current rate structures don’t charge most homeowners for using excess power, nor do they change the price based on time of day. For the overwhelming majority of homeowners, the payback on a solar power system with battery storage could take decades.

Batteries aren’t the only way to reduce the need for short-order energy, or so-called “demand response,” says Mr. Romito. Smart thermostats, managed by the utility company, can precool homes when solar power is at peak production, reducing load on the grid in the evening.

This cannot only be as useful as batteries in certain cases, it can be more cost effective. Other possibilities include remotely determining when electric vehicles charge and even shifting large industrial loads to different times of year.

In states where electricity is more affordable, it’s still early days for batteries in homes. But Mr. Romito says users and utilities will continue to move toward them with the inexorable addition of more and more renewables to the grid.

Mr. Manghani of GTM Research agrees. His battery storage adoption forecasts track closely with states and regions where renewable energy is being generated.

Falling prices also help. Battery pack prices have decreased, on average, 24% a year since 2010. Cheaper batteries shorten the resulting payback period, which in turn makes renewable energy more attractive to home owners. In 2016, solar grew faster than any other energy source, according to the International Energy Agency.

At the intersection of these and other trends is a simple fact: For the first time since the discovery of fire, the way humans get energy is set to fundamentally change.

Posted on October 17, 2017 at 12:05 am
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Mid-Century Inspiration

My listing on SW Greenleaf Court was built in 1981 but was inspired by the styles seen so often in mid-century architecture. By incorporating some of the colors, furniture, light fixtures and details from that time, this property would feel fresh yet stay true to its inspiration. For more information on my listing, click here. 

Posted on July 14, 2017 at 8:54 am
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