Homeowners with mortgages on their residences saw their equity increase by 5.6 percent year-over-year during the first quarter, according to data from CoreLogic
. This represents a gain of nearly $485.7 billion since the first quarter of 2018, with the average homeowner gaining $6,400 in home equity over the 12-month period.
Some states experienced significant gains: Nevada’s homeowners gained an average of approximately $21,000, while Idaho homeowners saw an average of approximately $20,700 in gains and Wyoming homeowners gained an average of $20,300.
During the first quarter, the total number of mortgaged homes in negative equity decreased by one percent year-over-year to 2.2 million homes or 4.1 percent of all mortgaged properties, while the number of mortgaged properties in negative equity during the first quarter 2019 fell 11 percent, or 268,000 homes, from 2.5 million homes, or 4.7 percent of all mortgaged properties, from the first quarter of 2018. The national aggregate value of negative equity was approximately $304.4 billion at the end of the first quarter, up by approximately $2.5 billion from $301.9 billion in the fourth quarter of 2018 and up year-over-year by approximately $18 billion from $286.4 billion in the first quarter of 2018.
“A moderation in home-price growth has reduced the gains in home-equity wealth and will likely slow the growth in home-improvement spending in the coming year,” said Frank Nothaft, chief economist for CoreLogic. “For larger remodeling projects, homeowners often choose to cash-out some of their home equity through a first-lien refinance or placement of a second lien.”