Pandemic Housing Boom Creates a Home Equity Windfall for Homeowners

According to CoreLogic, Inc. the California based corporation that provides financial, property, and consumer information, analytics, and business intelligence, as prices rise, home equity multiplies. In the past year, homeowners with mortgages, representing about 63% of all properties, have seen their equity increase by 10.8%. That equates to a collective $1 trillion in gained equity, or an average $17,000 per homeowner, the largest equity gain in more than 6- years. Of course, the increase in equity was not the same in every state. States with the hottest home prices saw the biggest gains. Frank Nothaft, CoreLogic’s chief economist commenting on the report said, “Over the past year, strong home price growth has created a record level of home equity for homeowners. The average family with a home mortgage loan had $194,000 in home equity in the third quarter. This provides an important buffer to protect families if they experience financial difficulties.”