Despite the economic turmoil of the pandemic, home equity continued to climb in the second quarter of 2020, with the average homeowner gaining $9,800 in equity and negative equity falling 15% between the second quarters of 2019 and 2020, according to a new analysis by CoreLogic, a property data analytics provider.
Homeowners with mortgages, which account for roughly 63% of all properties, have seen their equity increase by 6.6% year over year. This represents a collective equity gain of $620 billion. Negative equity, also referred to as underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth.
“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures,” said Frank Martell, president and CEO of CoreLogic. “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.”
Click here for more information: https://www.forbes.com/sites/brendarichardson/2020/09/21/more-americans-are-house-rich-as-equity-rises-in-2nd-quarter/#30ff8d7b5186