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Homeowners in the Dallas-Fort Worth metropolitan complex have one of the lowest negative equity or “underwater mortgage” rates this year in a country where they owe more than the value of their homes.
In the Dallas-Plano-Irving metropolitan area, more than 860,000 homeowners owed debt in the first quarter and more than 10,000 debts on their homes to date, or 1.21 percent. percentage negative equity.
Factors include the rapid rise in domestic values in the Dallas area and Texas as a whole.
By comparison, the share of homeowners with negative capital nationwide fell by 23 percent year-on-year in the first quarter of 2022, showing how much appreciation was given to rising home values. in DFW.
“Strong growth has contributed significantly too significant migration in the region last year,” said Selma Hepp, chief economist at CoreLogic. “Of the major metropolitan areas, Dallas has seen the largest population growth, with nearly 100,000 people between summer 2020 and summer 2021.”
The more people enter, the values of the home are likely to continue to grow. Zillow says the average home value on the DFW market is now more than $ 370,000, up 29.3 percent from last year and 7 percent more than in the first quarter of 2022.
Other studies have shown that DFW’s house prices have risen by almost 40 percent compared to last year, the largest increase in home sales in the country.
“Property prices are likely to slow for some, but will remain strong, which will help keep negative capital low,” Hepp said.
“Equity is positive for home buyers who increase their total wealth due to higher equity. At DFW, the average homeowner with a debt of nearly $ 72,000 saw an increase in equity last year, ”he said.
Hepp said the capital increase could allow homeowners to raise some money for other expenses, which could help reduce further price increases due to the inflation crisis.
“While equity alone may not affect refinancing – mortgage payments – with more equity, homeowners can get some money for other expenses they can,” he said. “We expect the cash-out to refinance a larger share of the refinance volume this year.”
Reference Source: The Real Deal
