Home equity continues to skyrocket along with prices across the U.S., according to the CoreLogic Homeowner Equity Report…(CoreLogic)
- U.S. homeowners with mortgages in Q1 of 2022 have seen their equity increase by 32.2% since the first quarter of 2021.
- This represents a collective gain of $3.8 trillion and an average gain of #63,600 per borrower.
California continues to dominate in gross dollar amount with $141,000 average dollars gained year-over-year in Q1 followed closely by Hawaii(+139k) and Washington (+$114k).
- NOTE: North Carolina was number 10 at $90k.
As prices and equity rise, homes with negative equity are plummeting. The total number of mortgaged homes in negative equity decreased by 23% from one year ago to 1.1 million homes, or 2% of all mortgaged properties, at the end of Q1 of 2022.
Equity gains are likely to slow as price gains for homes begin to slow which looks to be coming sooner rather than later. Equity is an important metric because people are less likely o walk away from their mortgage if they are sitting on money in their house. With only one million homes underwater, just 1.7% of all mortgaged properties are underwater. However, if you look at all single-family homes, it equates to 1.4%; if you look at all housing units, it is 0.7%. Sorry crash bros, no housing crashes this year…