According to a report published by CoreLogic, homeowners with mortgages in the first quarter of 2022 saw their equity grow by 32.2% year-over-year. There was a collective equity gain of $3.8 trillion in the first quarter. This was an average gain of $63,600 per borrower. Homeowners with mortgages accounted for around 60% of properties across the country. Home equity and home prices both rose together, in fact, home prices were up 20% in March 2022 compared to March 2021.
“This has led to the largest one-year gain in average home equity wealth for owners and is expected to spur a record amount of home-improvement spending this year,” Patrick Dodd, CEO of CoreLogic said in a statement.
Homeowners across the nation, approximately 62,000 homeowners regained their home equity. Good news but CoreLogic still reports that around 2% of homeowners with a mortgage still remain underwater. This is about 5.3% less than those reported underwater in the fourth quarter of 2021.
There is still hope, the report predicts that if home prices increase by 5% then around an additional 130,000 homes would regain equity. Lets hope it takes this trend, if it doesn't and the market turns the opposite way, then around 167,000 additional homes will go underwater.
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