Rising Home Prices Average Growth in Owners’ Equity in the United States | Local company
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 ââare 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.