Frank Nothaft, chief economist for CoreLogic, attributed home price growth as the principal driver of home equity creation. According to the report, home prices were up 17.7% for the past 12 months ending in September. Price growth has proven to be the fuel spurring record gains in home equity wealth, the economist added.
The latest data shows steadily increasing equity growth from previous reports.
The Q1 report showed an equity increase of 19.6% year over year, representing a collective equity gain of more than $1.9 trillion. The average gain then was $33,400 per borrower in the 2020 comparable period.
The upward trend was seen in this year’s second quarter, when the nation’s homeowners saw a 29.3% increase in equity gains to $2.9 trillion. The average gain was $51,500 per borrower, the previous report indicated.
The gains are hardly surprising in light of robust home price growth, Selma Hepp, CoreLogic’s deputy chief economist, told Mortgage Professional America.