U.S. homeowners with mortgages saw a collective equity gain of $1 trillion in the third quarter, a 10.8% increase from Q3 2019, according to a new report from CoreLogic. That comes out to an average gain of $17,000 per homeowner, the largest average equity gain since the first quarter of 2014.
The big picture: The housing market has been on fire since the summer as Americans fled large population centers, looked to take advantage of record-low interest rates and sought to park their cash in real estate as U.S. money supply surged.
Yes, but: Experts believe the overall boom in home sales could continue for years. However, the CoreLogic HPI Forecast shows home price growth slowing over the next 12 months as new home construction and more existing homes ease supply pressures.
- This could moderate the pace of both price growth and equity gains, the company says.
Of note: The percentage of homeowners who hold negative equity, or owe more on their mortgage than their homes are currently worth, decreased by 6.9% from Q2 to 1.6 million homes, or 3% of all mortgaged properties.