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During 2020, U.S. homeowners gained a record o $1.5 trillion in equity despite the coronavirus pandemic. According to the latest Home Equity Report (fourth quarter of 2020) by CoreLogic, homeowners with a mortgage saw their equity increase by 16.2%. In total, the average gain was of $26,300 per homeowner.
Prices went up because of high competition. Therefore, there were equity gains. In fact, the equity gains in the fourth quarter of 2020 reached the highest level since 2013. This equity gain has helped many U.S. homeowners against financial difficulties brought on by the pandemic.
Compared with the previous year, home prices in December 2020 went up by 9.2%. This boosted the amount of home equity for the average homeowner with a mortgage over $200,000. Despite the hardships brought by the pandemic, positive factors such as record-low interest rates and a booming housing market encouraged many U.S. families to enter homeownership.
On the other hand, negative equity decreased by 21% (410,000 properties) in the fourth quarter of 2020.
AMG International Realty is a global real estate firm specializing in Florida. If you are you looking to buy, rent, or sell in Miami we are here to guide you through every step of the way. From mortgage applications, to finding your dream home and closing the deal. Contact us today!
Chat with me on WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).
