More than a quarter of a million properties regained equity in the third quarter (Q3) of 2015, according to a report released today by CoreLogic, a property information service provider. The report says that 92 percent of all U.S. homes with outstanding mortgages now have positive equity. Nationwide, borrower equity increased year over year by $741 billion in Q3 2015.

The total number of mortgaged residential properties with negative equity stood at 4.1 million, or 8.1 percent, in Q3 2015. That was down 4.7 percent quarter over quarter from 4.3 million homes, or 8.7 percent, compared with Q2 2015 and down 20.7 percent year over year from 5.2 million homes, or 10.4 percent, compared with Q3 2014.

For the homeowners with negative equity, the aggregate value of negative equity nationwide was $301 billion at the end of Q3 2015, declining approximately $8.1 billion or 2.6 percent from $309.1 billion in Q2 2015. The value of negative equity declined overall year-over-year from $341 billion or 11.8 percent in Q3 2014.

Of the more than 50 million residential properties with a mortgage, approximately 8.9 million, or 17.6 percent, have less than 20 percent equity and 1.1 million, or 2.2 percent, have less than 5 percent equity.

Frank Nothaft, chief economist for CoreLogic, credited the increase largely to rising home values.

CoreLogic president and CEO Anand Nallathambi acknowledged this is the largest source of wealth for many Americans and is optimistic for 2016.

“The rise in home prices, expected to be at least 5 percent in 2016, will continue to build wealth and confidence across America,” he said in a statement, “As this process continues, it will provide support for the housing market and the broader economy throughout next year.”

Some highlights from the report:

• Approximately 3.1 million underwater borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $229,000 and the average underwater amount is $58,000.
• Approximately 1.6 million underwater borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $307,000 and the average underwater amount is $83,000.
• The bulk of positive equity for mortgaged residential properties is concentrated at the high end of the housing market; 95 percent of homes valued at $200,000 or more have equity, compared with 87 percent of homes valued at less than $200,000.