Here are some amazing stats to share from the Quarterly Corelogic Home Equity Report.
Let's start at the national level:
CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties*) have seen their equity increase by a total of $1 trillion since the third quarter of 2019, an increase of 10.8%, year over year.
In the third quarter of 2020, the total number of mortgaged residential properties with negative equity decreased by 6.9% from the second quarter of 2020 to 1.6 million homes, or 3% of all mortgaged properties. On a year-over-year basis, negative equity fell by 18.3% from 2 million homes, or 3.7% of all mortgaged properties, in the third quarter of 2019.
In the third quarter of 2020, the average homeowner gained approximately $17,000 in equity during the past year. This marks the largest average equity gain since the first quarter of 2014.
Locally in Colorado:
We were slightly above the average of equity gain this past year at $18,000 per homeowner.
Two main points to take away from this:
The number of mortgages in negative equity fell by 18.3% year over year in Q3 2020
Average equity gain of $17,000 per homeowner in Q3 2020 was the highest in over six years
The market is thriving and it's a great time to be a homeowner. If you aren't a homeowner you are missing out. Negative equity continues to fall which is an excellent sign that we are not in a bubble and the housing market is strong.