The hardest thing for some of us to get our minds around has been that there exists no Law of Conservation of Equity: if it’s reduced at Point A, there is no Point B at which it must therefore increase. There’s still a lot of it out there — $6.2 trillion, said the Federal Reserve at the end of June — but six years ago there was over $13 trillion. That’s one hell of a vanishing act.
Roughly one of every three homes is mortgage-free, according to federal and industry estimates.
Among owners who have mortgages, according to CoreLogic, 48.5 percent of them have at least 25 percent equity stakes in their properties. Roughly a quarter of owners with mortgages — 24.6 percent — have more than 50 percent equity.
At the other end of the spectrum, 22.5 percent of owners are in negative equity positions, burdened with houses worth less than their mortgage balances.
According to the county assessor, the value of the palatial estate at Surlywood dropped by a percentage point this year, but the amount due on the mortgage went down more than that, so technically my equity position has improved by a smidgen: about 27 percent, putting me pretty close to the 50th percentile. Property-tax rates won’t be released until later this month, but I anticipate about a 1-percent increase — which would leave my tax bill for this year at pretty much where it was last year. Then again, my mad prediction skillz have been fairly questionable of late.