home equity

Colorado ranks among the top 10 states for highest average equity gain, rising $71,000 year over year,
according to the Q2 2022 CoreLogic Homeowner Equity Insights report.

Tom Kalinski, RE/MAX of Boulder

Even with nationwide home price increases beginning to slow, homeowners continued to gain near-record equity in their homes.

Colorado ranks among the top 10 states for highest average equity gain, rising $71,000 year over year, according to the Q2 2022 CoreLogic Homeowner Equity Insights report. Hawaii, California and Florida — all with gains of $100,000 or more — led the nation for the highest average equity gain. Home equity represents the monetary value of your home compared to mortgage owed.

U.S. homeowners with mortgages, which is about 63% of all properties, saw their equity rise collectively by a total of over $3.6 trillion since the second quarter of 2021, a gain of 27.8% year over year, writes the Q2 2022 CoreLogic Homeowner Equity Insights report.

The result: Borrowers now have almost $300,000 total average equity — the highest ever reported in the CoreLogic data series. The price growth combined with the refinance boom of the last two years helped lower the national average loan-to-value ratio to 42%, the lowest reported in the CoreLogic data series since 2010.

Fifteen states posted higher annual home equity gains than the average in the Q2 2022 CoreLogic Homeowner Equity Insights report. Here are the top 10 states and the average equity homeowners gained:

  • Hawaii – $130K
  • California – $117K
  • Florida – $100K
  • Arizona – $89K
  • Nevada – $82K
  • Washington – $82K
  • Colorado – $71K
  • Utah – $71K
  • North Carolina – $70K
  • South Carolina – $69K

Negative equity — also known as upside-down mortgages or borrowers who owe more on their mortgages than their homes are currently worth —went down. From Q2 2021 to Q2 2022, the total number of mortgaged homes in negative equity decreased 18% from 1.3 million to 1 million homes, or 1.8% of all mortgaged properties.

Based on mortgages held in Q2 2022, CoreLogic predicts that “if home prices increase by 5%, 116,000 homes would regain equity; if home prices decline by 5%, 148,000 properties would fall underwater.”

The growth in home equity points to a still positive outlook for homeownership, which has long been recognized as one of the most consistent ways to build wealth for future generations. The net worth of a typical homeowner is about 40 times that of a renter, according to the National Association of Realtors.

Read the full story and see the full Q2 2022 CoreLogic Homeowner Equity Insights report at corelogic.com/press-releases/corelogic-us-home-equity-increases-again-in-q2-2022-with-the-total-average-equity-per-homeowner-reaching-a-record-high-of-300000/ and corelogic.com/intelligence/homeowner-equity-insights.

By Tom Kalinski. Tom is the broker/owner of RE/MAX of Boulder, the local residential real estate company he established in 1977. He was inducted into Boulder County’s Business Hall of Fame in 2016 and has a 40-year background in commercial and residential real estate. For questions, email Tom at [email protected], call 303.441.5620, or visit boulderco.com.