Lowest Foreclosure Rates in 2016

Good news! Rates of foreclosures were the lowest they have been in years in 2016. The article below from Housing Wire goes into great detail of just how low rates dropped across the country. This is a positive thing because it signifies more recovery from the recession. Our economy is still rebuilding, but if the housing market shows this much improvement then other markets must too!

Foreclosure rates dropped more than any year on record in 2016, according to the first look at December 2016 mortgage data report by Black Knight Financial Services, a Fidelity National Financial company and a provider of integrated technology, data and analytics solutions that facilitate and automate many of the business processes across the mortgage lifecycle.

Foreclosures dropped by 30% in 2016, and the inventory of loans in active foreclosure declined by more than 200,000 loans, according to the report.

Another report showed that foreclosure activity dropped significantly in 2016 to its lowest point in 10 years, according to the 2016 U.S. Foreclosure Market report from ATTOM Data Solutions, a fused property database.

For the month, December’s 59,700 foreclosure show a decline of 24% from the same time last year. Delinquencies also decreased by 0.91% monthly and 7.5% from December 2015.

While some states saw delinquency rates much higher than the national average, most still saw significant improvement from the previous year.

Here are the top 5 states with the highest 90+ days delinquency rates:

5. Tennessee – 1.97%

This state dropped 16.33% from 2015


4. Arkansas – 2.12%

This state dropped 11.07% from 2015


3. Alabama – 2.37%

This state dropped 15.86% from 2015


2. Louisiana – 3.25%

Contrary to the downward trend, this state increased 12.27% from 2015


1. Mississippi – 3.44%

This state dropped 15.24% from 2015


Source: http://www.housingwire.com/articles/39011-foreclosures-dropped-more-than-any-year-on-record

Good news for client communication

If you are communicating with clients on a regular basis through text and email, you can often find that it is hard to find the time to do so, making emojis your best friend. The emoji selection however, has been extremely limited for the real estate community, but that’s all changed now. Check this out.

Right up there with KIMOJI and Fitmoji by Shaun T, Realtors now get their own emojis to call home.

If the moving boxes and two house options on Apple’s emoji list weren’t enough, you’re in luck.

The California Association Of Realtors launched an emoji keyboard specifically for Realtors, containing more than 30 Emojis.

Here is a screen shot of the Realtor-centric emojis Realtors, and not only CAR Realtors, can choose from.

But first, feel free to download it on your own by searching CARmojis. 

Click to enlarge


(Source: CAR)

“With the vast number of Realtors communicating with their clients via text messaging and email, it only made sense to add a little fun and excitement to some of these messages,” said CAR President Pat “Ziggy” Zicarelli.

CARmojis is available in the Apple App Store and the Google Play store.

Here are a few other fun emoji article as the tiny pictures that evict all the fun emotions Realtors, buyers and sellers want gain popularity.

Can you decipher this emoji listing for The White House?

Here are the answers to the emoji homebuyer challenge

Top 5 tips for homebuyers and sellers ’emoji style’

Source: http://www.housingwire.com/articles/37016-good-news-realtors-all-your-emoji-dreams-just-came-true

Staying Motivated is Half the Battle

When it comes to this dog eat dog world of entrepreneurship, staying motivated really is half the battle. The amount of energy that it takes to really make a small business work is so immense but the payoffs can be that much greater. Here are some great tips that can help you stay motivated and achieve the success you desire.

1. Visit trade related organizations and networking group events. If things are tough for you in your industry right now, chances are others in your industry are feeling and fighting the same challenges too. Attend a trade association or networking event and see how others in your industry are handling the pinch and what they are doing to keep themselves motivated and moving in a positive direction. It’s nice to meet with like-minded people in a supportive environment, plus it gives you a chance to brainstorm breakthrough ideas with business people who understand the industry and what you’re going through. Remember to bring lots of business cards, you never know who you may meet that could use your products or services.

2. Look for other companies that complement what products or services your company provides, and build a strategic alliance with them. When you find another company who is interested in establishing a strategic alliance with your company, first discuss how you can provide added value for their clients. Then discuss how they can provide add value to your clients. Share one or more of your client lists with each other; this will give each company a boost by providing a new client base to start marketing to. I don’t recommend that you just hand your client list over to your new found friend, but maybe put some collateral material together that they could pass along to their clients explaining your products and services. When a new strategic alliance client shows interest you can promptly follow-up with them, and if they use your products or services you will give a referral fee to the strategic alliance company. Make sure you do your homework and research before you establish and enter into a strategic alliance with any company. You do not want to get involved with another company that has a bad reputation in the industry?especially, one that will hurt your company’s reputation too, in the end.

3. Take some time to study new industry products and services that have recently become popular in your industry. For example, when I owned an electrical company we had a period one winter when things had slowed down drastically. Instead of sitting in the office and worrying about what I could do to make money, I took a class on a new lighting system that had just hit the market. When I got back from the class I spent the next few days putting together a new company marketing brochure on the new product and sent it to all of my former clients. Before I knew it my company was booked for the next 3 months installing the new lighting systems. It motivated us and pushed over the hump, and it kept us from having to lay-off employees due to a continuing drastic drought. We now had a new product to offer to our clients and a jump on other companies in our area.

Read more at: http://bit.ly/1uGAxYb

America’s Political Climate and Real Estate

Most novices do not truly grasp the intricacies of how many factors are at play in the real estate market. Many people are not even aware just how much of a role politics has to play in how the real estate market functions. In the midst of nationwide debates on Planned Parenthood and gun control, talks of a government shut down are reaching far and wide. How would this affect real estate?

While a government shutdown isn’t seen as highly likely this fall, it’s not out of the realm of possibility.

A few circumstances could align to make it happen right when the Federal Reserve is looking at raising interest rates. 

Pro-life Republicans in both houses want to defund Planned Parenthood after the release of damning, grisly videos showing the abortion provider engaged in the sale and marketing of fetal body parts. This would guarantee a Presidential veto.

In turn, some congressional Democrats and other Democrat leaders are talking about undertaking some maneuvering to force a gun control bill in the wake of the Oregon community college shooting.

The government is currently operating under a continuing resolution, which expires Dec. 11.

Last month the Federal Open Market Committee voted to table an interest rate hike, and after the horrible September jobs report most think the chance for a rate hike at the Oct. 27-28 FOMC is remote.

The next FOMC after that is Dec. 15-16, four days after the CR expires.

Bottom line: If the FOMC elects to leave its target rate unchanged during the October meeting, and lawmakers are unable to reach an agreement funding the government, then the FOMC will have to make its December decision under the economic cloud of a government shutdown.

“While myriad factors influence rate decisions, a lengthy government shutdown during the FOMC’s December meeting will surely give some voters pause since the 2013 government shutdown shaved ~0.25 percentage points off the annualized GDP growth rate,” says Isaac Boltansky at Compass Point Research & Trading. “If the FOMC leaves rates unchanged in October, its next meeting could be during a federal government shutdown which would complicate the committee’s decision and likely lessen the odds of liftoff in 2015.”

Source: http://www.housingwire.com/articles/35278-will-the-fed-raise-interest-rates-if-the-federal-government-is-shut-down

Seattle is Losing its Housing Heat

Seattle has been a city buzzing with new residents, new jobs and a great real estate market but now it seems that it is beginning to lose some of its housing market heat as scarcity becomes greater and prices are becoming too high for most people to afford. In addition, mortgages have been negatively affected.

Home sales in western Washington state are predicted to slow down the rest of the year and into early 2016 due to scarce inventory, new rules for mortgage closings and affordability concerns, the latest report from the Northwest Multiple Listing Service said.

“We simply can’t sustain double-digit increases in sales when inventory levels continue to drop every month,” said OB Jacobi, president of Windermere Real Estate. “We’re on the cusp of a housing market slowdown.”

According to the most recent statistics from the MLS, there’s a double-digit drop in inventory, a double-digit jump in closed sales and a near double-digit increase in prices from a year ago.

And the new TILA-RESPA integrated disclosure rule isn’t helping.

“With the introduction of the new TRID banking and closing disclosure requirements, we will see longer closing timeframes for the foreseeable future. This will lead to a slowdown in closings and thus may slow the market until early or mid-2016,” said Northwest MLS director Darin Stenvers.

Meanwhile, closed sales through the first nine months of this year are running 16.6% ahead of the same period a year ago, with median prices up 9.2%.

Northwest MLS members reported 9,574 pending sales (mutually accepted offers) in September for a 7.9% increase from the year-ago figure of 8,875. Compared to August, pending sales fell 9.7%.

Additionally, closed sales jumped 17.5%, with year-over-year sales rising from 7,020 finished transactions to 8,245. Twenty of the 23 counties reported double-digit gains from a year ago.

The median price on last month’s closed sales of single-family homes and condos was $312,000, up nearly 9.5% from the year-ago figure of $285,000, but down slightly from August.

Source: http://www.housingwire.com/articles/35279-western-washington-on-the-edge-of-a-housing-market-slowdown

Trulia and Zillow Merger

Zillow is a website that is essentially just a real estate data base that includes estimates of prices, information on houses and the status of sale of different properties based on zip code locations. Trulia is a site with very similar properties as Zillow but a slightly different interface and different features. Now with this merger, you can get the best of both worlds. Here’s how.

After more than a year after it was first announced and nearly seven months after the deal closed, the merger of Zillow and Trulia is now truly and fully complete.

Zillow Group (Z and ZG) announced Wednesday that the integration of Trulia into Zillow is now finished, bringing to close a process that began initially in July 2014 when Zillow announced its plans to acquire its largest competitor, Trulia.

The last hurdle in the integration process was the company’s advertising platform. That process is now complete, and now agents that advertise with the Zillow Group can reach a massive audience, all with one ad buy – a fact that Zillow Group CEO Spencer Rascoff views as absolutely crucial for the future of Zillow and the real estate industry as a whole.

In a call with investors in August, Rascoff said that the integration of Zillow and Trulia’s advertising platforms presents real estate agents with an opportunity they’ve never been given before – to reach a significant majority of real estate buyers and sellers right in the palm of their hands.

During the call, Rascoff said that, according to comScore, the Zillow Group’s brands now account for 72% of all mobile-only real estate category visitors.

“This is extraordinary and represents a tremendous opportunity for our advertisers as well as validating our acquisition of Trulia,” Rascoff said in August.

“What I’m really excited about is being able to have our hundreds of sales people in Denver, Irvine and Seattle call real estate agents and say, ‘With one ad buy, you can appear in front of 72% of mobile-only visitors across mobile devices,'” Rascoff said on the call. “They’ve never been able to reach that type of audience scale before.”

And for Zillow Group, capturing more of the money that agents spend to advertise on is critical to the company’s success going forward. In fact, Rascoff said in May that Zillow “sells ads, not houses,” so gaining more market share of agent advertising is at the company’s foundation.

“Advertisers follow audience,” Rascoff said in April, and with the large audience that Zillow can boast across its various platforms, Zillow is well-positioned to capture more of agents’ advertising spend thanks to its audience.

According to Rascoff, the Zillow brand alone represents nearly half of the real estate category in market share of visitors. Rascoff also said in the August call that the Zillow Group now represents the 32nd largest web property in America.

And with that audience, Zillow expects to command more advertising dollars.

“The annualized run rate for our agent advertising business reached nearly $456 million at the end of the (second) quarter, compared to $349 million at this time last year, which is a 30% plus increase,” Rascoff said last month.

“This still represents a very small portion of the approximately $10 billion, spent by real estate advertisers per year,” Rascoff continued. “That says to me that, we are dramatically underpenetrated from our monetization standpoint relative to our potential.”

When discussing the Zillow-Trulia ad integration last month, Rascoff said that the completion of the integration would be “a glorious day.”

And it’s one that came much earlier than Zillow first thought it might.

According to Zillow, the integration was originally scheduled to be complete by the end of 2015, but according to a tweet from Rascoff, the integration is complete, four months early.

“As we near the end of this transitional year, I am incredibly proud of the speed at which we integrated the Zillow and Trulia advertising products,” Rascoff said in a statement announcing the completion of the Trulia integration.

“Every one of our ad products – mortgages, rentals, display media, and now real estate agent advertising – are seamlessly integrated so Zillow Group clients can buy advertising from one company, and the ads are shown across multiple consumer brands,” Rascoff continued. “We completed this complicated integration months ahead of schedule and are now well-positioned to benefit from our enormous audience scale as we move into 2016.”

For agents and brokers who use Zillow and Trulia to connect with buyers and sellers, the completion of the integration means they can manage their advertising efforts across both sites through one streamlined platform, Premier Agent, Zillow said in its announcement.

Through Premier Agent, agents can access and manage their combined Zillow and Trulia profile, which includes profile information, client reviews, and past sales, Zillow added.

According to Rascoff, the ad integration presents agents with a whole new world.

“(Real estate agents’) newspaper used to call them in the local market and say, if you advertise in the newspaper, you can reach a lot of people looking for real estate,” Rascoff said in August.

“But this is totally different from a scale, a measurement, a efficacy, an integration standpoint in terms of this ad product sending leads directly into an online CRM or they electronically follow-up on the leads,” he continued. “I mean they’ve never been able to buy audience at this scale, with this type of measurement and efficiency before.”

And that new world begins today.

Source: http://www.housingwire.com/articles/35018-zillow-completes-trulia-integration-begins-universal-ad-sales-to-agents

Job Hunting Today

Because the economy has been suffering since the middle of the 2000’s, employers are starting to be as picky as they want to be about who they hire. This leaves many job openings with descriptions and requirements that are almost impossible to fulfill but don’t let that get you down. Here are some tips to make every interview worthwhile.

Never say Never and Don’t Give Up!

If you are turned down from an opportunity for the standard reasons, “You don’t have any experience”; “You are overqualified”; and “This is not a good fit for you,” don’t give up. Ask the interviewer questions such as, “What positions do you have?” “Do you know of any other opportunities?” or “Would you recommend anyone that has other opportunities or positions?”

A few days after the interview write that interviewer a little note saying, “Thanks so much, I really appreciated your time”; “Sorry that it didn’t turn out like I had hoped, but could you give me some advice?” or “If I had to do the interview over again, could you point out to me how I can make any improvements so that the next time I am interviewed, I can do a better job?” If you don’t get any feedback, don’t worry about it. Most interviewers won’t tell you the real reasons you didn’t get the job. Companies are afraid of being sued for confidentiality. No matter how obnoxious you are in the interview, employers will not share some information with you because they are afraid that you will turn around and use their information against them. You have to be the type of person who is willing to say to the employer, “I’m going on down the road, but please help me. Show me what I have done that is wrong.” A good, honest person might share their thoughts with you that may help you the next time. So, go to every interview you possibly can, do the best you possibly can in those areas, and ask for an opportunity.

Leaders Create Their Own Jobs

A young man, who used to be a radio personality, came to me and asked for a job in marketing. I didn’t have a company that had any openings in marketing and I didn’t know of any companies with openings in just marketing. As I talked to him for a minute, it was clear that all he wanted was a job in marketing with no clear specifics in the area. Usually the job titles are more specific in the “type” of area of marketing.

Jobs or careers that you would like to do just don’t pop up and say “Honey You’re Home”. You can go online, search the web, and fill out one hundred applications and the response you will get is, “We have all types of applicants with degrees in marketing who can’t find jobs, because it’s a tight field right now.” Leaders create their own jobs by marketing the best product they have-themselves.

Let me give you an example. A man was unemployed and told me, “I’ll take a job in anything”. His unemployment benefits had run out and he would take any job. I said, “Let me show you how to create a job. First, find a job, any job, and start out working as an employee. As an employee you show the people how you can increase sales by using your marketing skills, and they’ll promote you to the next level. Then do the best job you can at the next level. Keep moving up the ladder from employee to crew leader, from crew leader to shift manager, from shift manager to manager. Consider if, while you’re managing the store, you can show the owners or the leaders of the corporation your marketing skills to increase sales. If you can ‘Show Me the Money’ and how your store did a better job than other stores, now is the time to ask to be the vice president of mar-keting. You have proven that your local store marketing techniques have been able to increase sales time and time again. Then they’ll have to promote you. When you go back and say you want that job in marketing, they’ll give you that job in marketing. They’d be crazy not to. Look at what you’ve done. You’ve created an opportunity for yourself. You have proven that you could do the job.

If you have confidence in your greatness, then you can start on any level. In no time at all you will have the career you want. Now, go out and plan your work, then work your plan.

About the Author:

Harvey Alston is considered one of the most dynamic, “high octane” speakers in America. Harvey Alston has been a full-time speaker since 1989. He has spoken to millions of people throughout the United States who have benefited not only from his knowledge, but also from the wisdom that Harvey Alston brings to the finish line.

Harvey Alston’s unforgettable words of individual responsibility for achievement have improved spirits, spurred growth, and changed lives. His powerful, soul-searching presentations uplift audiences to a higher standard, and to a level where they strive only for the best. Harvey Alston believes in solitary achievement, shared accomplishment and the dignity of human beings.

Click the following link to learn more about: Harvey Alston

Source: http://www.motivationmagazine.com/articles/finding-and-creating-jobs

Common Traits of Leaders

Most people associate being a leader as being stubborn, motivated and persuasive. There are some qualities that real leaders have that go unnoticed. One of these is modesty and willingness to share credit. This will really cause a team to band behind someone when they feel their efforts are being recognized and not just attributed to the boss.

When you think of a leader what do you initially think of? Do you think of a person that is a great delegator, a great communicator, and an inspirer? Well one of the most underrated qualities of a great leader is humility. I am sorry that I said the bad “H” word, but it is true. While many leaders are focusing on casting a great vision, on working more efficiently on building teams, and building membership there are quite a few that have forgotten to look in the mirror to address one of the greatest leadership qualities known to man. Here are three practical ways to show humility as a leader. 

Realize that you are not superman/superwoman. I remember when I was a Store Manager for a major retailer and I was leading a team of 50 people. For some reason I thought that I had to know all the answers and that I could not really ask for help or else it would show weakness. What is interesting is that leaders all across the country sometimes still feel this same way. This can lead to two things, (1) extreme burnout because you are the only one doing all the work or (2) a failed organization because if you are not asking for help your people are not being utilized effectively and thus they aren’t growing.

Admit you make mistakes. As a matter of fact admit that you make a lot of mistakes. No one likes a person that appears perfect, because we all know that no one is perfect. Think about the last time that you knew someone messed up but they did not tell you about it. How did it make you feel? If you are like me you lost a little bit of trust with that person. That feeling is the same feeling those who we lead feel when we are not honest with them about the mistakes we make. When we are vulnerable and humble enough to share our mistakes with others an amazing thing occurs – they actually usually end up trusting us even more. 

Create an environment of openness. One of the biggest challenges that leaders face is that they do not know how the people that they lead really feel. The people we lead are talking about us, the big question is do we have an environment where they can be open and honest about how they really feel. One way that I began to create this environment is by conducting a Plus/Delta. A Plus/Delta simply asks two questions, (1) what am I doing well and (2) what do I need to change or improve. Some leaders around the country have decided to do this either once a month or once a quarter. The key to executing this is to just listen and write down both the good and the bad. Don’t try to justify why things happen or the reason(s) you did it that way. If you try to justify it you are just creating an environment where people feel their opinions do not matter.

The biggest thing regarding humility is that you really have to be humble in order to show that to others. If you believe you are a gift given to your organization than you are missing the point of leadership. As leaders we are there to help accomplish the mission of the organization, lead other people with great vision, and truly inspire them through great humility. Lead like never before with a little more humility!

About the Author:

Justin Jones-Fosu is addicted to leadership! He is a sought after speaker/consultant on personal and professional leadership issues. Justin speaks 50+ times a year on leadership, leading through diversity, and other related topics. He is the author ofFinding Your Glasses: Revealing and Achieving Authentic Success, but more importantly, he is a loving husband and a proud father.

Click the following link to learn more about: Justin Jones-Fosu

Source: http://www.motivationmagazine.com/articles/humility-in-action-for-leaders

Rekindling Motivation at Work

For those who are not ready to make the shift to being an entrepreneur or simply don’t see it in themselves to be their own bosses, it can sometimes be frustrating working for the same company for extended periods of time. Even if you are in a great working situation, eventually work will lose its luster. Here’s how to rekindle the motivation and happiness that you need to be productive at your job.

“The happiest people don’t have the best of everything.
They just make the best of everything.”

~ Author Unknown

In today’s work environment it’s become the norm to come across more and more employees who are very unhappy at work. Many will say, it’s due to recent work related changes, coping with difficult leadership, downsizing, working on conflict plagued teams, the economy, the current national unemployment rate, unfavorable changes at home, health issues, personal toxic habits, or they simply do not like their job. These are definitely factors that can zap and plummet a person’s “Happiness” levels over time.

Even in the midst of uncertain and undesired challenges-you can recapture and reignite “Happiness” at work. It will require your positive mental toughness and inspired change of perspective. From this point forward, I want you to shift your thinking from what your organization and everyone else has to do for you to be happy at work to what you will immediately begin doing so you can recapture and enjoy “Happiness” at work.

Now that you’ve shifted your thinking, I find it timely to provide you with my “15 Quick Tips to Recapturing and Reigniting Your Happiness at Work.” Keep in mind that we cannot control one hundred percent of the external factors that can impact our “Happiness” but we do have full control over how we manage ourselves and our internal feelings each day. In turn, giving us the internal power to identify, control and untie the knots® delaying or blocking our “Happiness” at work.

I challenge you to read, consider, and post the complete list of 15 quick tips in your work area for daily recall and guidance. Also practice at least seven to ten of them daily to begin promptly improving your level of “Happiness” at work.

15 Quick Tips to Recapturing and Reigniting Your Happiness at Work

( What not to do so your “Happiness” can shine through at Work! )

1. Do not listen to or side with other unhappy employees.

2. Do not contribute to gossip or participate in the workplace rumor mill.

3. Do not waste time pointing fingers and blaming others.

4. Do not disrespect, bully, belittle or sabotage co-workers.

5. Do not frown or display negative emotions, even in moments of adversity.

6. Do not pass-off or turn-in poorly done work.

7. Do not waste productive work hours doing non-work related tasks.

8. Do not fail to consistently get your work done in a timely fashion.

9. Do not be the team player who is confrontational and difficult to work with.

10. Do not say and do any inappropriate things that will offend other co-workers or
land you in trouble.

11. Do not be the employee who chronically comes in late, calls out, and makes
excuses to leave early.

12. Do not make it your mission to get other happy co-workers to think and perform

13. Do not bring your home or outside of work drama into the workplace.

14. Do not be the employee other employees cannot trust or count on.

15. Do not voice a complaint without ‘professionally’ suggesting with it at least one
researched solution to possibly fix the problem or challenge.

About the Author:  Ty Howard,
President, Publisher and Editor-in-Chief of MOTIVATION magazine

Ty Howard is an internationally recognized authority on personal, professional, relationship and habits development. He is the creator and lead facilitator of the trademarked Untie the Knots® Process, and the author of the best-selling book Untie the Knots® That Tie Up Your Life: A Practical Guide to Freeing Yourself from Toxic Habits, Choices, People, and Relationships, as well as dozens of published articles on relationships, healthy habits development, empowerment and peak performance worldwide.

For information on the author click on the following link:  Ty Howard.

Source: http://www.motivationmagazine.com/articles/recapturing-and-reigniting-your-happiness-at-work

Do You Know What Your Home is Worth Really?

With the real estate market on the climb back up, there are still some factors that are inhibiting growth. A new study suggests that many people do not have an accurate understanding of what the true value of their home is and therefore are making financial decisions based on a number that may or may not be the actual value of their home.

Although home prices have risen around 20% since mid-2011, many homeowners are highly unaware of the true value of their home.

According to a study by Fannie Mae, this could be creating a roadblock in the housing market since it is stopping people from buying move-up homes.

“If homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes,” the report stated.

This first chart shows how high home prices have increased.

Click to enlarge


(Source: Fannie Mae)

Fannie’s report looked at data from the National Housing Survey, which pulled a national representative sample of U.S. adults in order to calculate the percent of mortgaged households who perceived they had negative home equity.

During NHS telephone interviews, homeowners rely on their perceptions of their homes’ values and their mortgage balances. Unlike respondents to online and mail surveys, NHS respondents have no opportunity to review their personal records or search for data.

The blue dashed line in the chart below shows the percent of mortgaged homeowners in the NHS who perceived that they were underwater by 5% or more.

Click to enlarge


(Source: Fannie Mae)

Despite a significant rise in home prices, survey respondents still perceived that they had negative equity.

On the other side, borrowers also wrongly assumed how much their home equity had grown. 

The blue dashed line in the chart below shows the percent of mortgaged homeowners in the NHS who perceived that they had significant equity in their homes. 

Click to enlarge


(Source: Fannie Mae)

The report explained that the percent of homeowners estimated by CoreLogic (CLGX) to have significant home equity always was much higher than the percent who perceived themselves as having significant equity.

Fannie attributed the divide to the fact that a substantial group of homeowners may not recognize how much the values of their homes rose after 2011.

“And, even if they recognized that their homes’ values had increased, many homeowners may underestimate how much their homes’ values and home equity increased,” the report stated.

Fannie explained that one side effect of this is that homeowners who underestimate their homes’ values also likely underestimate:

  1. How large a down payment they could make with their home equity
  2. Their chances of qualifying for mortgages, and, therefore
  3. Their opportunities for selling their current homes and for buying different homes.

Unlike other housing changes, Fannie said this issue has a simpler solution since it doesn’t require changes in laws or regulations.  

Fannie suggests that the industry should provide homeowners with the information and tools necessary so they can better estimate their home equity, delivering easy, affordable access to better estimates of home values could afford many benefits. 

Source: http://www.housingwire.com/articles/34667-do-you-know-how-much-your-home-is-worth