Rising Home Prices Average Growth in Owners’ Equity in the United States | Local company
A sign for sale is displayed outside a home in Mount Lebanon, Pa. On Tuesday, September 21, 2021. Soaring home prices are driving the fastest rate of growth in homeowners’ equity in more than a decade, although recent signs of a cooling The US real estate market reports more moderate gains in the second half of the year. (AP Photo / Gene J. Puskar)
Gene J. Puskar
By ALEX VEIGA AP Commercial Writer
LOS ANGELES – Soaring home prices have pushed average homeowners’ net worth growth to the highest level in more than a decade, though recent signs of a slowdown in the US real estate market point to more moderate gains in the second semester.
Homes with a mortgage gained an average of $ 51,500 in equity in the second quarter, an increase of 29.3% from the April to June quarter of last year, according to real estate information company CoreLogic. . This was the highest quarterly average gain in home equity since the second quarter of 2010, the company said.
This equates to nearly $ 3 trillion in equity earned by U.S. homeowners with a mortgage, which is about 63% of all homes, CoreLogic said. Average homeowners’ equity jumped nearly 20% in the first quarter from the previous year.
Growing home equity can have a huge impact on the economy, giving homeowners more financial flexibility to make big purchases or build a nest egg. Rising home values ​​are also making it increasingly difficult for prospective homeowners to buy.
Homeowners in California, Washington, and Idaho posted one of the largest average increases in second-quarter equity: $ 116,000 in California, $ 103,000 in Washington, and 97 $ 000 in Idaho.
The surge in homeowners’ equity gains follows a record rise in US home prices this year in a scorching housing market fueled by ultra-low mortgage rates, a tight inventory of properties for sale and the desire many potential buyers to have more living space during the pandemic.
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