Home equity grew by $2 trillion in the first quarter
June 10, 2021 at 21:07
Home prices have been on a tear this year, hitting record highs and pushing up homeowners' wealth.
Home equity -- the difference between the value of your home and how much you owe on your mortgage -- rose by nearly 20% in the first part of this year from last year, according to CoreLogic.
Homeowners with mortgages -- about 62% of properties -- saw an equity gain of nearly $2 trillion nationally from last year, which is an average gain of $33,400 per borrower.
"Homeowner equity has more than doubled over the past decade and become a crucial buffer for many weathering the challenges of the pandemic," said Frank Martell, president and CEO of CoreLogic.
"These gains have become an important financial tool and boosted consumer confidence in the US housing market, especially for older homeowners and Baby Boomers who've experienced years of price appreciation," he said.
Soaring demand for a record-low supply of homes has caused a blitz in home prices over the past year, pushing home equity higher.