Mortgage News June 21, 2023
Although homeowner equity saw a slight decline on an annual basis for the first time in over a decade, there was a rise in equity when examining the performance on a quarterly basis. Moreover, it is expected that home prices will increase in the coming twelve months.
Based on CoreLogic’s Homeowner Equity Report, single-family properties with mortgages accounted for 63 percent of all properties in the first quarter. The equity for this category experienced a 0.7 percent decrease compared to the corresponding period in 2022, signifying the first such decline since 2012.
As a result, there was a total decrease of $108.4 billion in homeowner equity, averaging to $5,400 per borrower across the United States. Nevertheless, the average homeowner equity in the first quarter still exceeded $274,000 in the U.S.
In the report, Selma Hepp, the Chief Economist at CoreLogic, elucidated that shifts in home equity are closely correlated with changes in housing prices. She noted that despite a decrease in average equity compared to the previous year, there was an improvement from the fourth quarter of 2022. This improvement was attributed to a surge in monthly home price growth observed at the start of 2023.”
In terms of individual states, Washington recorded the most significant annual decrease in home value per borrower, reaching $74,300. California came next with a decline of $59,600, followed by Utah at $37,700.
On the other hand, several states, such as Florida, Hawaii, Maine, New Jersey, and Rhode Island, experienced year-over-year gains surpassing $20,000 per borrower.
In addition to the aforementioned states, other states also witnessed notable year-over-year gains in home value per borrower. For instance, Nevada saw an increase of $25,400, while Arizona experienced a gain of $23,800. Colorado and Oregon recorded gains of $22,100 and $21,700, respectively.
It is worth noting that these figures highlight the changes in home value on a per-borrower basis, providing insights into the varying trends across different states in the United States.
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