DQNews Archived Article

California's Equity Flood

by Real Estate Analyst John Karevoll
May, 1999

La Jolla, CA.— The value of California's housing stock is increasing by close to $15 billion each month, pouring welcome equity into homeowner finances and contributing to economic growth, a real estate information service reported.

The value of California's seven million homes was $1.67 trillion in April, up 9.6 percent from $1.52 trillion a year ago, according to DataQuick Products Division.

The appreciation rate is increasing, a year ago valuation was going up 8.4 percent. Although some homes have not regained their pre-recession value, most have, and the current valuation is the highest on record.

The annualized increase in value is currently strongest in Southern California at 10.3 percent, in part because of relatively low year-ago numbers. The Bay Area, which led the state's real estate recovery, is now experiencing a 9.7 percent increase in the value of its housing stock. In the Central Valley the increase is 6.3 percent and rising.

"What this means is that the average California homeowner is making more than $2,000 a month just by owning their home. With interest rates as low as they are now, it's tempting for many to tap into that equity," said Mike Ela, leader of DataQuick Products Division.

Lenders are actively marketing equity lines and refinance mortgages. More than forty thousand equity lines are being established monthly, the refinance rate is just under eighty thousand a month.

DataQuick Products Division monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The dollar volume valuation figures above are arrived at by running an electronic appraisal of every home in the state, and then adding the market values up. Included are all properties that county tax assessor offices have designated as houses or condos. Ranch and other multi-use properties are not included. Newly-built homes are not included if they haven't been sold yet.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1999 DataQuick Information Systems.
All rights reserved.

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