Ignite FB Tracking PixelHomeowners Saw Average Equity Gain of $9,800 in Q2 - Dave Hiller
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Homeowners Saw Average Equity Gain of $9,800 in Q2

by Dave Hiller 09/24/2020

 

 

Q2 Home Equity Increade

Graphic courtesy of Core Logic.

We are in the middle of a deeping economic and health crisis. Yet home prices around the country continue to appreciate. Normally this would not be the situation we would be in at this point. Continued historically low interest rates that is helping pushing home buyers to get a home.  The countervailing winds of seller's reluctant to put their home on the market thus driving low inventory for purchase. This is creating a huge increase in the value of a home thus increasing equity gains at unpresidented rates.  In Oregon the average equity gain was just under the national average. This is probably due to already high home prices.  Like in the situation where the stock market is having gains and you only know your actual gain of the stock you own when an that stock is sold, your home's equity gain is only known for certain when it is sold.  For more details read the article below.

 

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)

 

 
About the Author
Author

Dave Hiller

SRES ®

Graduate, REALTOR ® INSTITUTE

e-PRO ® Endorsed

Pricing Strategic Advisor

Center for Realtor Excellence Endorsed

HOWNW.com Certified Specialist

Core, REALTORS®

License No. 201226626

Oregon Licensed Broker 

Hi, I'm Dave Hiller and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.