More than 26,500 homeowners in the Sacramento area regained equity in their homes in the first three months of this year compared with the last three months of 2012, CoreLogic reported this morning.
In the four-county Sacramento region, the number of homeowners who owe more on mortgages than their homes are worth fell from 150,198, or 31 percent, in the fourth quarter of 2012 to 123,600, or 26 percent, in the first quarter 2013, the Irvine-based real estate information service said.
So-called negative equity has been tumbling in California and across the nation as home prices have risen in the past year. Growing demand and a tight supply of homes for sale have been the driving factors.
In Sacramento, one of the most improved markets in the U.S., homes values have risen by double digits since the spring of 2012, when the market turned.
Price appreciation is expected to slow down as more homeowners regain equity and put their houses on the market, CoreLogic said.
"The impressive home price gains of 2012 and the beginning of 2013 have had a big impact on the distribution of residential home equity," Mark Fleming, chief economist for CoreLogic, said in a news release.
"During the past year, 1.7 million borrowers (nationwide) have regained positive equity," he said. We expect the pent-up supply that falling negative equity releases will moderate price gains in many of the fast-appreciating markets this spring."
Call The Bee's Mark Glover, (916) 321-1184.