Home equity wealth rising with home prices
Home prices nationwide, including distressed sales, increased year over year by 6.3% and month over month by 1.1% according to the latest Home Price Index (HPI) released by CoreLogic. The CoreLogic HPI Forecast projects that home prices will increase by 5.2% over the next 12 months.
“Home-equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.”
“Home-price growth creates wealth for owners with home equity,” said Anand Nallathambi, president and CEO of CoreLogic. “A 5% rise in home values over the next year would create another $1 trillion in home-equity wealth for homeowners.”