Annual Home Equity Gains Cool Again in Q4 2022By RISMedia Staff
Homeowners with mortgages (which account for roughly 63% of all properties) saw equity increase by 7.3% year-over-year, representing a collective gain of $1 trillion since Q4 2021, according to a new report from CoreLogic.
CoreLogic’s Homeowner Equity Report for Q4 2022 found that as home price growth continued its slow, steady decline in the final months of 2022, home equity trends naturally followed suit. The average borrower earned about $14,300 in equity YoY, compared with the $63,100 gain seen in Q1 2022. Key highlights:
“While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity more than they had at the onset of the pandemic,” said Selma Hepp, chief economist at CoreLogic. “Even in Idaho, where borrowers were the most vulnerable to losses, the typical homeowner with a mortgage still has about $250,000 in remaining home equity.” “Nevertheless, with 66,000 borrowers entering negative equity in the fourth quarter, the total number of underwater properties is now approaching levels seen at the end of 2021, which was the lowest since the Great Recession,” Hepp said. “The new hot spots for equity declines are largely markets that have seen the most significant home price deceleration, including Boise, Idaho; the San Francisco Bay Area; cities in Utah; Phoenix and Austin, Texas.” For the full report, click here. |
Today's Top Stories |