CoreLogic: Homeowner equity rises 4.8 percent in Q2 2019

Rising home prices continued to boost home equity for most homeowners in the United States in the second quarter of the year, according to the real estate data company CoreLogic.

Between April and June, CoreLogic determined that equity value among mortgaged properties rose 4.8 percent from the previous year. This amounted to an aggregate total of $427.9 billion in equity value nationwide.

"Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started," said Frank Nothaft, chief economist at CoreLogic. "Combined with low mortgage rates, this rise in home equity supports spending on home improvements and may help improve balance sheets of households who could take out home equity loans to consolidate their debt."

The average homeowner gained $4,900 in equity over the previous year. The strongest gain occurred in Idaho, with the typical homeowner seeing their equity increase $22,100 from the second quarter of the year, while the average year-over-year equity gain in Wyoming was $20,000. Three states—Connecticut, Delaware, and North Dakota—had year-over-year equity declines during the second quarter of the year.

Two million homes had negative equity, or loans exceeding the value of the property itself. This total was down 7 percent from the previous quarter and 9 percent from the second quarter of 2018, with 151,000 residences escaping negative equity over the course of the year.

The aggregate total of negative equity in the United States was approximately $302.7 billion at the end of the second quarter. This was down $2.6 billion from the first quarter of the year.

Louisiana had the highest share of homes with negative equity, with 10.3 percent of mortgaged properties worth less than the loans securing them. The share stood at 8.5 percent in Connecticut and 6.3 percent in Iowa. Just 1.5 percent of mortgaged homes in Washington had negative equity, along with 1.6 percent of those in Oregon and Utah.

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