Posted 06/18/2018

by Aly J. Yale

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

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Home equity gains hit $1 trillion; Western homeowners come out on top

home equity

Aly J. Yale

The Mortgage Reports Contributor

Equity on the up and up

It’s a good time to be a homeowner. According to new data, American homeowners have gained more than $16,000 in equity over the past year — and even more growth is on the horizon.

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Increased equity means increased options

According to the latest Home Equity Report from CoreLogic, U.S. homeowners have gained $16,300 in equity in the last four quarters – a 13.3 percent jump over last year. Homeowners gained $1 trillion in wealth in the form of home equity in the past year alone.

More home equity equals more options for homeowners, opening the door to home equity lines of credit, cash-out refinances and other money-generating financial products. It also means more profits when it comes time to sell.

Renovations named the top reason for HELOCS, but many still don’t know what they do

Frank Nothaft, chief economist at CoreLogic, equates the high rate of equity growth with rising home prices.

“Home price growth has accelerated in recent months, helping to build home equity wealth and lift underwater homeowners back into positive equity,” Nothaft said. “The CoreLogic Home Price Index grew 6.7 percent during the year ending March 2018 – the largest 12-month increase in four years. Likewise, the average growth in home equity was more than $15,000 during 2017 – the most in four years.”

In just the first quarter of 2018 alone, 84,000 homeowners regained positive equity. Just under 5 percent of all mortgaged properties are currently underwater.

Verify your new rate (Jul 19th, 2018)

Where equity has risen most

According to CoreLogic’s data, equity has jumped the most in the Western part of the country.

In Washington, homeowners gained about $44,000 in home equity over the last year, while those in California gamed $51,000. These states will likely see continued equity growth in the coming years, too.

“In the far Western states, equity gains are fueled by a long run in home price escalation,” said Frank Martell, president and CEO of CoreLogic. “With strong economic growth and higher purchase demand, we expect these trends to continue for the foreseeable future.”

Other states to see high year-over-year growth in equity were Maine ($20K), Idaho ($25K), Montana ($20K), Nevada ($30K), Utah ($28K), Colorado ($22K), Hawaii ($33K) and Massachusetts ($24K).

Existing home sales rise, especially in South and West

Get today’s mortgage rates

Want to invest in one of these high-equity states? Shop around and see what mortgage rates you qualify for today.

Verify your new rate (Jul 19th, 2018)

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

2018 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)