Home equity down year-over-year but still significantly higher than pre-pandemic.

U.S. homeowners with mortgages saw their home equity decrease by 0.7% year-over-year–an average loss of $5,400 per borrower–according to CoreLogic. Homeowners with mortgages account for nearly 63% of all U.S. properties, CoreLogic noted in its Homeowner Equity Report for the first quarter. The collective loss exceeds $108 billion, the report said. “Home equity trends closely follow home price changes,” said CoreLogic Chief Economist Selma Hepp. “As a result, while the average amount of equity declined from a year ago, it increased from the fourth quarter of 2022, as monthly home prices growth accelerated in early 2023.” Hepp said the average U.S. homeowner now has more than $274,000 in equity, up significantly from $182,000 before the pandemic. “Also, while homeowners in some areas of the country who bought a property last spring have no equity as a result of price losses, forecasted home price appreciation over the next year should help many borrowers regain some of that lost equity,” she said. U.S. homeowners with a mortgage lost a small amount of equity in the first quarter for the first time since early 2012, while national combined equity followed suit. “Despite these declines, home equity remains solid, with the number of underwater properties unchanged since the fourth quarter of 2022,” the report said. 

Source: CoreLogic