TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1357006
M R EP O RT | 13 MDWELL Home Sellers Looking Toward Record Profits A new study has taken a deep dive into equity, as U.S. homeowners have seen a $26,300 rise year-over-year rise in annual equity gains. Source: CoreLogic's Home Equity Report for Q4 2020 Negative Equity Share for Select MSAs Boston 2.4% Chicago-Naperville-Arlington Heights, Illinois 6.1 Denver-Aurora-Lakewood, Colorado 1.3 Houston-The Woodlands-Sugar Land, Texas 1.6 Las Vegas-Henderson-Paradise, Nevada 2.4 Los Angeles-Long Beach-Glendale, California 1.0 Miami-Miami Beach-Kendall, Florida 6.3 New York-Jersey City-White Plains, New York 3.5 San Francisco-Redwood City-South San Franciso, California 0.7 Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia 2.4 A s the spring homebuy- ing season launches, U.S. homeowners looking to sell will earn record gains, as CoreLogic's Home Equity Report for Q 4 2020 shows that home- owners with mortgages (which account for roughly 62% of all properties) have seen their equity rise by 16.2% year-over-year, a gain of $1.5 trillion-plus in equity, and an average gain of $26,300 per homeowner, since Q 4 of 2019. "Compared with a year earlier, home prices in December 2020 were up sharply—9.2%, accord- ing to the CoreLogic Home Price Index—boosting the amount of home equity for the average home- owner with a mortgage to more than $200,000," said Dr. Frank Nothaft, Chief Economist for CoreLogic. "This equity growth has enabled many families to finance home remodeling, such as adding an office or study, further contributing to last year's record level in home improvement spend- ing." Nationwide, states with strong home price growth and high home prices continued to experi- ence the largest gains in equity, whereas states that were hard hit by the pandemic continue to experience dwindling gains. MSA Name Q4 2020 Negative Equity Share