Home Equity Gains Hit +$1.5T in Q4 2020

Key Highlights

• Average equity gain of $26,300/homeowner in 2020
• National negative equity share was 2.8% in Q4 2020

National Home Equity Gains Hit 7 Year Highs in Q4 2020

According to the latest CoreLogic Equity Report, the average annual equity gain was $26,300 per homeowner during Q4 2020.  This equity gain registered an annual increase of +16.2%, the largest average equity gain since Q3 2013.  Likewise, the equity amount in mortgaged real estate increased to +$1.5T.

Obviously, the fact that home prices soared in 2020 gave homeowners this huge equity cushion for just-in-case times.  CoreLogic anticipates that home equity gains are likely to continue in 2021 as home-purchase demand remains strong and continues to push up prices.

Negative Equity Shares Hit Lows

The negative equity share during Q4 2020 nationally was 2.8%, also according to the latest CoreLogic Equity Report.  Properties with negative equity decreased by 410,000 properties from Q4 2019 to Q4 2020.

Ten States with Largest Negative Equity Shares

All ten of the states listed below have negative equity shares well above the national average of 2.8%.  Far and away, Louisiana holds the unwanted position of first place with 8.5% of its mortgages with negative equity.  Iowa (5.6%) and Illinois (5.4%) take the unenviable second- and third-placed positions.

1. Louisiana – 8.5%
2. Iowa – 5.6%
3. Illinois – 5.4%
4. Connecticut – 5.2%
5. Oklahoma – 5.0%
6. Arkansas – 5.0%
7. North Dakota – 4.2%
8. Delaware – 4.1%
9. New York – 4.0%
10. Kentucky – 4.0%

Ten Metros with Largest Negative Equity Shares

As always, most everything about real estate is related to location including negative equity shares by metro area.

1. Miami -8.4%
2. Chicago – 3.9%
3. New York City – 4.6%
4. Washington DC – 4.0%
5. Las Vegas – 3.85%
6. Boston – 3.1%
7. Houston – 1.7%
8. Denver – 1.5%
9. Los Angeles – 1.3%
10. San Francisco – 0.7%

Thanks to CoreLogic.

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