Strong Price Creates Jaw-dropping Home Equity

Home prices soared throughout the summer and fall despite the economic impact of the pandemic. Appreciation rose to a jaw-dropping level since 2014 in the third quarter of 2020.

The economic toll of COVID-19 did not manage to cripple the housing industry. 

CoreLogic’s recent report shows the increase of home equity due to increasing housing demand and prices. Data only consider properties with a mortgage. 

Roughly 63% of all homeowners have seen their equity increase by a total of $1 trillion since the third quarter of 2019. This is an increase of 10.8%, year over year.

This means an average equity gain per homeowner of up to $17,000.

Washington had the highest year-over-year average increase at $35,800.

As foreclosures rates are maintained at record-lows, these equity buffers are key players. It will also help shield families from additional financial hardships over the next several months.

Negative Equity Falls

Negative equity is also known as “underwater