A map of the United States with dollar signs scattered across it as well as neighboring countries out of focus..

© PeskyMonkey - iStock / Getty Images Plus

Average Homeowner Equity Gain in Third Quarter: $57K

December 10, 2021

Homeowners continue to build wealth. Home price growth is reaching the highest level in more than four decades, pushing equity gains to a record high.

The average home equity gained between the third quarter of 2020 and the third quarter of 2021 is about $57,000, CoreLogic reports.

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth,” says Frank Martell, president and CEO of CoreLogic.

Overall, homeowners with mortgages have seen their equity increase by a total of $3.2 trillion since the third quarter of 2020—a jump of 31.1% year over year, CoreLogic reports.

California, Hawaii, and Washington posted the largest equity gains in the third quarter year over year, up $118,700, $112,700, and $96,000, respectively, CoreLogic reports. On the other hand, North Dakota posted the lowest average equity increases at $15,400.

A map of the U.S. on a gradient color scale showing the average equity by state.

Meanwhile, the number of homeowners with negative equity—where the mortgage on the property is higher than what the property is currently worth—continues to fall. Negative equity decreased by 5.7% when comparing the second quarter to the third quarter. About 1.2 million homes—or 2.1% of all properties with a mortgage—are in a negative equity position, CoreLogic reports.

Source: 
Homeowner Equity Insights,” CoreLogic (Dec. 9, 2021)