Home equity has soared along with home prices in the second quarter of 2021, according to the CoreLogic’s Equity Report…(CoreLogic)
- U.S. homeowners with mortgages have seen their equity increase 29.3% ($2.9 trillion) since the second quarter of 2020.
- The average homeowner gained approximately $51,500 in equity during the past year.
THE STATE OF THINGS: California, Washington, and Idaho experienced the largest average equity gains at $116,300, $102,900 and $97,000 respectively. (North Carolina was up $44K)
- North Dakota experienced the lowest average equity gain in the second quarter of 2021 at $10,600.
Probably the best result of rising equity is the decrease in homeowners that are underwater…
- Q-O-Q: Homes with negative equity decreased by 12% from the first quarter of 2021 to 1.2 million homes, or 2.3% of all mortgaged properties.
- Y-O-Y: Home with negative equity fell by 30% from 1.8 million homes in Q2 of 2020.
Dr. Frank Nothaft, Chief Economist for CoreLogic, said in a statement that home equity is at a record-level…
““Home equity wealth is at a record level and will bolster economic activity in the coming year. Higher wealth spurs additional consumer expenditures and also supports room additions and other investments in homes, adding to overall economic activity.“
