CoreLogic Homeowner Equity Report Shows Positive Gains From Q1 to Q2

(Image courtesy of CoreLogic)

CoreLogic, Irvine, Calif., released its Homeowner Equity Report for the second quarter. While U.S. homeowners with mortgages saw home equity decrease 1.7% year-over-year, they also saw gains from the previous quarter–an average of $13,900.

Fewer mortgaged homes were underwater in Q2 from Q1–a decrease of 6% to 1.11 million homes or 2% of all mortgaged properties.

However, there was a 4% uptick in underwater homes year-over-year.

“While more borrowers are underwater compared with one year ago,” Selma Hepp, Chief Economist for CoreLogic, said, “they are not necessarily concentrated in markets that have seen the largest price declines, as negative equity also depends on the down payment. Natural disasters and related risks also play a substantial role in home equity changes.”

On a regional basis, borrowers in the West continue to experience the largest year-over-year equity losses, but homeowners in states such as Hawaii, California and Washington still have the most accumulated equity due to appreciation over the past decade.

“While U.S. home equity is now lower than its peak in the second quarter of 2022, owners are in a better position than they were six months ago, when prices bottomed out,” Hepp said. “The 5% overall increase in home prices since February means that the average U.S. homeowner has gained almost $14,000 compared with the previous quarter, a significant improvement for borrowers who bought when prices peaked in the spring of 2022.”