Morning Briefing: One state dominates for home equity

One state dominates for home equity
Almost a quarter of US homes with a mortgage have at least 50 per cent equity according to new research from RealtyTrac parent ATTOM Data Solutions.

That means that at the end of the second quarter of 2016 there were 12.3 million properties deemed ‘equity rich’ but one state dominates.

Among the metros with the highest share of equity rich homes, most are in California. In San Jose, 53.7 per cent of mortgaged homes have at least 50 per cent equity; in San Francisco it’s 47 per cent; in Los Angeles it’s 37.4 per cent; and in San Diego it’s 32.1 per cent. Honolulu is the only metro outside California that makes the top 5 with 38.2 per cent.

By county, California dominates again although the single county with the highest share of equity rich homes is Blount County, Tennessee with 72 per cent.

Read more: The 5 best counties in California for buying an affordable home

 
Housing affordability slipped in second-quarter
Housing affordability was impacted by rising home prices in the second quarter of 2016.

The affordability index from the National Association of Home Builders and mortgage lender Wells Fargo shows that 62 per cent of new and existing homes sold in the quarter were affordable to families earning the national median income of $65,700, down from 65 per cent in the first quarter.

“Though we have seen a modest drop in affordability in the second quarter, the [index] is still fairly high by historical standards,” said NAHB Chief Economist Robert Dietz. “Rising employment, favorable mortgage rates and increasing household formations will keep the housing market on a gradual, upward path during the rest of the year.”
 
Sting looks to move, but not far
Singing legend Sting and his actress-producer wife Trudie Styler could be on the move but they won’t be going far.
The couple currently own a home at 15 Central Park West but the New York Post reports that they are in talks to move to 220 Central Park South, a condo building currently being built.

Both their current home and potential new pad were designed by Robert A.M. Stern and have similarities including their range of luxury amenities.

It’s reported that Sting and Trudie are buying a triplex in the building and should have plenty of cash to do it; their current home is expected to be listed for around $55 million, double the price they paid in 2008.