PROVIDENCE – Rhode Island homeowners saw an average annual equity gain of $39,018 year over year in the fourth quarter of 2020, the sixth-largest increase in the United States, according to data released by CoreLogic Thursday.
Nationally, homeowners saw a $27,619 increase in equity year over year in the fourth quarter.
California, Idaho and Washington experienced the largest average equity gains at $54,500, $48,500 and $47,200, respectively.
The share of homeowners with a negative equity share in Rhode Island, known as underwater mortgages, accounted for 2.64%, a decline from 4.3% one year prior. Rhode Island had the second-highest rate of underwater mortgages of the three New England states included in the report. Maine and Vermont were not represented due to insufficient data.
Nationally, the share of underwater mortgages was 2.76% in the quarter.
“Compared with a year earlier, home prices in December 2020 were up sharply – 9.2%, according to the CoreLogic Home Price Index – boosting the amount of home equity for the average homeowner with a mortgage to more than $200,000,” said Frank Nothaft, chief economist for CoreLogic. “This equity growth has enabled many families to finance home remodeling, such as adding an office or study, further contributing to last year’s record level in home improvement spending.”
New England equity changes in the fourth quarter 2021:
- Connecticut: Homeowners saw an equity increase of $32,370 year over year. The share of negative equity in the state was 5.22%.
- Massachusetts: Homeowners saw an increase of $38,408 year over year. The share of negative equity in the state was 2.34%.
- New Hampshire: Homeowners saw an increase of $35,591 year over year. The share of negative equity in the state was 2.54%.
“Positive factors like record-low interest rates and a booming housing market encouraged many families to enter homeownership,” said Frank Martell, CEO and president of CoreLogic. “This growing bank of personal wealth that homeownership affords was noticed by many but in particular for first-time buyers who want a piece of the cake. As a result, we may see more of those currently renting start to enter the market in the near future.”
The full report can be found online but may require free registration.
