Key Highlights
- According to CoreLogic Q2 2020 Home Equity Report, homeowners with mortgages seeing equity increase +6.6% y/y
- Collective gain of +$620B since Q2 2019
- Average individual gain of +$9,800 per homeowner
CoreLogic released its latest Q2 2020 Home Equity Report the third week in September. This report indicates that homeowners with mortgages, some 63% of all properties, have seen their collective gain in home equity increase $620B. Individually, the average gain per homeowner in Q2 2020 came in at $9,800 since Q2 2019. These numbers represent an equity increase of +6.6% y/y.
Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 47372. 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & privacy: slkt.io/JWQt
Dr. Frank Nothaft, chief economist with CoreLogic, said, “The CoreLogic Home price Index registered a +4.3% annual rise in prices through June, which supports an increase in home equity.” States with strong home price growth continued to experience the highest gains in equity. Those states included:
- Montana – +28,900
- Idaho – +21,200
- Arizona – +20,000
- Washington – +20,400
- Utah – +17,000
Frank Martell, president and CEO of CoreLogic, said, “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.”
CoreLogic’s cautionary tale within this latest Q2 2020 Home Equity Report references projections that elevated unemployment would remain throughout the end of 2020 and that mortgage delinquencies could rise and lead to increases in distressed-sale inventory. Nothaft predicted that prices could decline in 11 states. If this occurs Nothaft then believes home equity gains could be negligible across the country next year and that equity loss could happen in some markets.
According to the 2020 book of mortgages, “if home prices increase by 5%, 270,000 homes would regain equity; if home prices decline by 5%, 380,000 would fall underwater.”
In Q2 2020, CoreLogic estimates the national aggregate value of negative equity at some $284B, down from $285B in Q1 2020 and down -6.6% from $304B in Q2 2019.
Thanks to CoreLogic
Also read: More Homes Falling into Vacant Zombie Foreclosure Land in Q3 2020, Home Equity Climbs Higher (Again) in Q3 2019, If You or Your Clients Bought in 2012, You’re A Home Equity Winner
