Analytical Firm CoreLogic has released its National Homeowner Equity Report for the second quarter of 2020. According to the study, the average homeowner nationally gained approximately $9,800 in equity during the past year. Idaho had the largest increase in equity in the first quarter of 2020, but that honor goes to Montana for the second quarter, having the largest year-over-year increase at $28,900.
The Gem State, however, still found itself in second place with $21,000 in increased equity for the past year. As we’ve seen for the past few years, prices here have been steadily rising in the valley. With those gains, equity increases have followed. Idaho is also among the nation’s leaders with having a minuscule percentage of homes with negative equity.
“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity,” said Dr. Frank Nothaft, chief economist for CoreLogic. “In our latest forecast, national home price growth will slow to 0.6% in July 2021 with prices declining in 11 states. Thus, home equity gains will be negligible next year, with equity loss expected in several markets.”
“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures,” said Frank Martell, president, and CEO of CoreLogic. “Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.”
Idaho is going to continue seeing increases in home values as there is an absence of housing inventory available, and demand is significantly outpacing supply. Consequently, home equity values are going to continue increasing substantially, as well. This will especially be the case here in the Treasure Valley as housing supplies are minimal.
Historically low-interest rates and colossal demand will continue to push home values higher, and for those looking to sell a home, they’re in a great position to reap the benefits of doing so.
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