PROVIDENCE – The share of mortgages with negative equity, or underwater mortgages, in the Providence-Warwick-Fall River metropolitan area declined 1.1 percentage points year over year in the fourth quarter of 2018 to 5.2 percent, according to CoreLogic Thursday.
The report said that there were 19,378 underwater mortgages in the metro area out of a total 371,819, compared with 23,337 underwater mortgages out of a total of 369,990 mortgages.
In Rhode Island, homeowners were said to have gained $16,138 in equity on average year over year in the fourth quarter. The increase gave Rhode Island the 10th-largest year-over-year dollar gain in the nation and the highest in New England. The share of negative equity mortgages in the Ocean State was 5.8 percent in the quarter.
Nationally, 4.2 percent of mortgages were underwater in the fourth quarter, and the average equity gain was $9,738 year over year.
New England negative equity mortgage share:
- Massachusetts: 3.9 percent
- New Hampshire: 4.4 percent
- Rhode Island: 5.8 percent
- Connecticut: 8.8 percent
- Maine: Not included in the report due to insufficient data
- Vermont: Not included in the report due to insufficient data
“As home prices rise, significantly more people are choosing to remodel, repair or upgrade their existing homes. The increase in home equity over the past several years provides homeowners with the means to finance home remodels and repairs,” stated Frank Martell, president and CEO of CoreLogic. “With rates still ultra-low by historical standards, home-equity loans provide a low-cost method to finance home-improvement spending. These expenditures are expected to rise 5 percent in 2019.”
New England year-over-year average equity gains in the fourth quarter:
- Rhode Island: $16,188
- Massachusetts: $16,069
- New Hampshire: $10,862
- Connecticut: A drop of $467
- Maine: Not included in the report due to insufficient data
- Vermont: Not included in the report due to insufficient data
The full report may be viewed online but may require free registration.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
