The CoreLogic Homeowner Equity Insights Report indicated that homeowners with mortgages saw their equity in homes increase by more than $3.8 trillion since Q1 2021. This translated to a 32.2% year-over-year increase. The CoreLogic analysts pointed out that, with a home price year-over-year increase of 20%, approximately 62,000 homeowners regained equity during the first quarter, compared to Q4 2021.
Meanwhile, negative equity decreased by 23% during the same time period, totaling 1.1 million homes. Two percent of homeowners with mortgages remained underwriter, representing a slight quarter-over-quarter decline.
Negative equity applies to borrowers who owe more on their mortgages than their houses are worth, and are caused because of a home value decline, an increase in mortgage debt and both.
CoreLogic analysts also reported the following:
Average home equity gained between Q1 2021 and Q1 2022 was $64,000
Homeowners in California, Hawaii and Washington led the nation in annual equity increases, gaining $141,000, $139,000 and $114,000, respectively
Iowa and North Dakota homeowners experienced the lowest average equity gains, at $17,300 and $19,000, respectively
U.S. homeowners with mortgages total approximately 62% of all properties nationwide
The CoreLogic HPI Forecast projects home prices to increase 5.9% from March 2022 to March 2023
“Price growth is the key ingredient for the creation of home equity wealth. Home prices were up by 20% in March compared to one year earlier in CoreLogic’s national Home Price Index,” said Patrick Dodd, CoreLogic’s President and CEO. “This has led to the largest one-year gain in average home equity wealth for owners and is expected to spur a record amount of home-improvement spending this year.”
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