Homeowners are gaining wealth in the pandemic. The average homeowner gained about $9,800 in equity year over year in the second quarter, according to a new report from CoreLogic, a real estate data firm.
“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures,” says Frank Martell, president and CEO of CoreLogic. “Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.”
Montana had the highest year-over-year average increase of $28,900 in the second quarter. Idaho, Washington, and Arizona followed with $21,000 and $20,000 in equity, respectively.
The housing market remained strong in the second quarter as buyers rushed to take advantage of record-low mortgage rates. Limited housing inventories mixed with strong buyer demand has helped fuel the increases in home prices. That, in turn, has helped to add to borrower equity through June, CoreLogic reports.
Source: “Home Equity Insights,” CoreLogic (2020)
