Homeowner equity surges in Houston amid rising housing prices

by Lindsey Wells

Housing prices nationwide have skyrocketed since the onset of the pandemic and continue rising today. While this is bad news for prospective buyers, rising home prices equal a surge in home equity, leading to a much more stable financial future for homeowners.

During the first quarter of 2022, Texas homeowners with mortgages saw an average gain of $54,000 in equity from the first quarter of the previous year, according to a new CoreLogic report.

The report analyzed U.S. mortgaged properties only, which account for roughly 62% of all properties in the country.

Locally, Houston borrowers gained an average of $46,500 in equity.

On a national scale, rising home values led to a collective $3.8 trillion increase in home equity for American borrowers in 2022’s Q1. This represents a 32% year-over-year increase or a record $63,000 per borrower, CoreLogic reported.

Homeowners in California, Hawaii and Washington led the country in annual equity increases, each gaining more than $100,000 in one year.

“Price growth is the key ingredient for the creation of home-equity wealth. Home prices were up by 20% in March compared to one year earlier in CoreLogic’s national Home Price Index,” said Patrick Dodd, president and CEO of CoreLogic. “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.”

Only 2% of U.S. homeowners with a mortgage remain underwater, a slight decline from the fourth quarter of 2021.

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