HOUSE RICH: Utah Leads U.S. in Positive Home Equity
Published On: June 17, 2019 Posted by: Jeremy Peterson
One of the perks of a real estate boom is increasing values and improving home equity. During the Great Recession, many homeowners with mortgages saw their home’s value plummet below the balance they owed on their mortgage. Being “upside down” on their homes led many owners to short sell or simply give up and let the bank foreclose. In Utah, time has healed that wound and CoreLogic has come out with new figures showing just how robust Utah’s recovery has continued.
Here you can see that Utah’s average borrower home equity gain over the past year has been $19,000. That is a healthy figure, especially when you compare that to Louisiana’s $300 year-over-year borrower home equity increase. Knowing Utahans spending habits, most of that home equity gain is in the form of home price appreciation rather than homeowners paying down their mortgages. Regardless, it a sign of a strong real estate market with low-risk (presently) of distress.
Another chart shows how which states have the most and least amount of negative home equity. Utah rakes among the top three states for the fewest homeowners that owe more than the value of their home.
Here you can see that Washington, Oregon, Utah, Colorado, and Texas round out the top five states. Poor Louisiana, Connecticut, and Illinois can’t catch a break.
The bottom line is that it’s a great time to own real estate if you live in Utah. Demand for housing still exceeds supply and that dynamic supports house prices moving forward. For borrowers that exercise prudence and avoid leveraging their home equity too heavily, real estate promises a source of growing wealth over time.
If you are looking to purchase a home and want to own a piece of Utah, CONTACT ME, and let’s start building equity in your future.