By ALEX VEIGA AP Business Writer
LOS ANGELES – Rising home prices have pushed average homeowner stock growth to its highest level in more than a decade, though recent signs of a slowdown in the U.S. housing market point to more moderate gains in the second half of the year.
Homes on a mortgage gained an average of $ 51,500 in equity in the second quarter, up 29.3% from the April-June quarter of last year, according to real estate intelligence firm CoreLogic. That is the highest quarterly average increase in home equity since the second quarter of 2010, said the company.
That’s the equivalent of nearly $ 3 trillion in equity US homeowners bought on a mortgage, which is roughly 63% of all homes, CoreLogic said. Average homeowner equity rose nearly 20% year over year in the first quarter.
The growth in home equity can have far-reaching effects on the economy, giving homeowners more financial flexibility to make major purchases or build a nest egg. Rising home values are also making it increasingly difficult for prospective homeowners to buy.
Homeowners in California, Washington state, and Idaho saw the largest average equity increases in the second quarter: $ 116,000 in California, $ 103,000 in Washington state, and $ 97,000 in Idaho.
The spike in home equity follows a record spike in U.S. house prices this year amid a scorching real estate market fueled by extremely low mortgage rates, low inventory of properties for sale, and the desire of many potential buyers for more housing during the pandemic.