The
report
shows
that
U.S.
homeowners
with
mortgages
—
roughly
61%
of
all
properties
—
saw

home
equity
increase
by
about
$4,100
between
Q4
2023
and
Q4
2024,
about
$2,000
shy
of
the
gain
of
$6,000
seen
in
Q3
2023.

The
average
borrower
had
$303,000
in
home
equity
at
the
end
of
2024.

“Housing
equity
growth
slowed
in
2024
versus
2020-2023
due
to
moderating
price
appreciation,
but
homeowners
maintain
substantial
equity
gains
from
prior
years,
preserving
their
strong
financial
position,”
commented

Selma
Hepp,
chief
economist
for

CoreLogic.

Home-price
appreciation,
which
is
leveling
off,
is
also

tempering
equity
gains
for
homeowners
across
the
U.S.,
resulting
in
clear
regional
divisions
for
equity
gains.
The
Northeast
continues
to
lead
the
way,
with
other
areas
of
expanding
equity
encompassing
the
upper
Midwest
as
well
as
California
and
Nevada.

The
states
that
saw
the
largest
gains
were
New
Jersey
($39,400),
Connecticut
($36,300)
and
Massachusetts
($34,400),
while
the
largest
losses
were
in
Hawaii
($-28,700),
Florida
($-18,100)
and
the
District
of
Columbia
($-14,700).

CoreLogic
says
that
home
prices
continued
to
be
the
major
driver
of
equity
shifts
and
markets
with
declining
prices
generally
saw
fallen
equity
in
2024.
In
particular,
several
Florida
markets
—
such
as
Cape
Coral,
Sarasota,
Lakeland
and
Tampa
—
have
experienced
weakening
prices
over
the
past
year,
which
led
to
Florida’s
average
equity
declining.

Amid

mass
government
layoffs
in
the
D.C.
metro
region,
CoreLogic
noted
that
borrowers
in
the
tri-state
area
have
accumulated
between
$261,000
(in
Maryland),
$287,000
(in
Virginia)
and
$353,000
(in
Washington
D.C.),
in
average
home
equity
which
will
help
as
a
financial
buffer
but
also
provide
a
downpayment
in
case
of
a
move.

However,
amassing
equity
does
not
necessarily
stave
off
the
possibility
of
being
underwater
on
a
mortgage,
the
information
services
company
pointed
out.
For
example,
in
Chicago,
average
year-over-year
equity
gains
were
just
north
of
$12,000
but
2.6%
of
properties
reported

negative
equity.

Negative
equity,
also
referred
to
as
underwater
or
upside-down
mortgages,
applies
to
borrowers
who
owe
more
on
their
mortgages
than
their
homes
are
currently
worth.

Quarter-over-quarter,
the
total
number
of
mortgage
residential
properties
nationwide
with
negative
equity
increased
by
9.3%
to
1.1
million
homes
or
2%
of
all
mortgaged
properties.
Year-over-year,
negative
equity
increased
by
7%
from
1
million
homes,
or
1.8%
of
all
mortgage
properties.

The
national
aggregate
value
of
negative
equity
was
approximately
$338
billion
at
the
end
of
Q4
2024,
up
quarter
over
quarter
by
approximately
$12.8
billion
or
4%
from
$326
billion
in
Q3
2023.
Year
over
year,
it
was
also
up
by
approximately
$12.8
billion
or
4%
from
$326
billion
in
Q3
of
2023.