Based on CoreLogic's Homeowner Equity Report for the first quarter of 2024, U.S. homeowners with mortgages (which account for roughly 62% of all properties) saw home equity increase by 9.6% year over year, representing a collective gain of $1.5 trillion and an average increase of $28,000 per borrower since the first quarter of 2023. This brought total net homeowner equity to more than $17 trillion at the end of Q1 2024.
U.S. homeowners with a mortgage continued to see healthy annual equity gains in the opening quarter of 2024. As one of the nation's most expensive states with perpetually high housing demand, California homeowners saw the largest equity gain in the country at $64,000.
"With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner," said Dr. Selma Hepp, chief economist for CoreLogic. "Importantly, higher prices have also lifted some 190,000 homeowners out of negative equity, leaving only about 1.8% of those with mortgages underwater."
"Home equity is key to mortgage holders who have seen other homeownership costs soar, including insurance, taxes and HOA fees, as a source of financial buffer." Hepp continued.
Negative equity, also referred to as underwater or upside-down mortgages, applies to borrowers who owe more on their mortgages than their homes are currently worth. As of the first quarter of 2024, the quarterly and annual changes in negative equity were:
- Quarterly change: From the fourth quarter of 2023 to the first quarter of 2024, the total number of mortgaged homes in negative equity decreased by 2.1%, to 1 million homes or 1.8% of all mortgaged properties.
- Annual change: From the first quarter of 2023 to the first quarter of 2024, the total number of homes in negative equity decreased by 16.1%, to 1.2 million homes or 2.1% of all mortgaged properties.
Source: worldpropertyjournal.com
