CoreLogic data reveals that the average homeowner added $7,300 to their home equity
Rising home prices continued to improve the equity situation of American homeowners in the fourth quarter of 2019.
For 96,000 homeowners, it meant a welcome return to equity, CoreLogic reported.
Overall, the roughly 63% of US homeowners who have a mortgage added $7,300 to their home equity as prices gained 5.4% year-over-year. That represents a collective increase of $489 billion and takes the average household family wealth to $177,000.
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth,” said Dr. Frank Nothaft, chief economist for CoreLogic.
Underwater homes
The data also reveals that quarter-over-quarter, the total number of mortgaged homes in negative equity decreased by 4.8% to 1.9 million homes or 3.5% of all mortgaged properties. Year-over-year the decline was 15% (330,000 homes).
"The number of underwater homes in the United States has fallen to the lowest level since the Great Recession. In general, Western states and those in the mid-Atlantic region are registering strong gains, compared to states in the Northeast and upper Midwest,” said Frank Martell, president and CEO of CoreLogic. “With unprecedented low rates and constrained supply, the housing market should continue to do well. Viewed against the backdrop of the recent stock market volatility, steady gains in home equity are a welcome source of stability.”
