PROVIDENCE – Homeowners with mortgages in Rhode Island saw an average equity gain of $19,956 from the second quarter of 2022 to the second quarter of 2023, according to CoreLogic on Friday.
Nationally, however, homeowners saw an average equity loss of $8,300 year over year in the second quarter, a 1.7% decrease, accounting for a combined loss of $287.6 billion in equity. CoreLogic noted that mortgaged properties account for roughly 63% of all properties nationwide.
“While U.S. home equity is now lower than its peak in the second quarter of 2022, owners are in a better position than they were six months ago, when prices bottomed out,” said Selma Hepp, chief economist for CoreLogic.
Accompanying the decrease in equity was a 4% year-over-year increase in negative equity share, the proportion of mortgage holders who owe more on their home loans than their property is worth. A mortgage with negative equity is often referred to as an “underwater mortgage.”
“Also, while more borrowers are underwater compared with one year ago,” Hepp said, “they are not necessarily concentrated in markets that have seen the largest price declines, as negative equity also depends on the down payment. Natural disasters and related risks also play a substantial role in home equity changes.”
Rhode Island had the second-largest equity gain year over year in New England.
Other New England states’ mortgage equity data for the second quarter of 2023:
- New Hampshire: Homeowners saw an average equity gain of $21,172 year over year. The state’s negative equity share was 1.64%.
- Connecticut: Homeowners saw an average equity gain of $20,288 year over year. The share of negative equity was 1.94%.
- Maine: Homeowners in Maine saw an average equity gain of $13,686 year over year. The state’s negative equity share was 1.62%.
- Massachusetts: Homeowners in Massachusetts saw an average equity gain of $1,110 year over year. The state’s negative equity share was 1.35%.
- Vermont: Mortgage equity data was not available.
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