Spread the Word: Home equity Is definitely Increasing
Since 2011, the price of the nation’s single-family housing market has risen 40 percent, with nationwide home equity doubling from $6.1 trillion to $12.7 trillion, CoreLogic’s data shows.
That has helped to rebuild the wealth of America’s property owners, writes Frank Nothaft, CoreLogic’s chief economist as part of his monthly column.
“Across the U.S., the value of the housing stock and the amount of home-equity wealth held by home owners have risen dramatically during the last five years,” Nothaft notes. The recovery in home equity “has helped support consumption spending and renovation expenditures” too.
Check out this chart that shows the summary of average equity gain per owner across the U.S.
CoreLogic predicts home equity will continue to make gains in the coming year, reaching $1 trillion, and will help to increase consumption spending and lead to greater economic increase in 2017.
As appreciation rises, the number is declining of property owners with negative equity, individuals who owe more on their property than it is currently worth. As of mid-2016, CoreLogic estimated about 3.6 million home owners – or about 7% – of home owners with a mortgage were in negative.
