Report: Pacific Northwest Leads U.S. in Home Equity Loss
Idaho and Washington rank #1 and #2 in regions hit hardest by rising interest rates and slowing home sales, according to a new report from CoreLogic. The Homeowner Equity Report (HER) shows that while homeowners nationally saw an equity increase of 7.4% in 2022 compared to 2021, Idaho and Washington led the U.S. in home equity loss.
“The total number of underwater properties is now approaching levels seen at the end of 2021, which was the lowest since the Great Recession,” said CoreLogic Chief Economist Selma Hepp. “The new hot spots for equity declines are largely markets that have seen the most significant home price deceleration, like Boise, ID.”
Mortgage equity decreases in 2022 were led by Idaho, which saw an average $21,400 drop, followed by Washington ($18,900), California ($8,500), Washington D.C. ($8,300) and Utah ($4,600).
It should be noted that despite recent turmoil, Hepp says U.S. homeowners still have about $270,000 in equity more than they had at the onset of the pandemic.