Hey there, here to break down some uplifting news for homeowners. Have you heard? Homeowner equity is reaching the stars, thanks to the recent climb in home prices. Let’s dive into what this means for you.

The Big Boost A fresh report from CoreLogic has just rolled out, showing a huge win for homeowners. In the last bit of 2023, if you had a mortgage, your home’s equity likely jumped up by 8.6% compared to the year before. We’re talking about a collective boost of $1.3 trillion, which breaks down to an extra $24,000 in the pockets of each homeowner. Now, the total equity homeowners have is a whopping $16.6 trillion.

This jump in home equity has been a game-changer, pulling millions out from the worry of owing more than their home’s worth. By the end of the year, only about a million homeowners were still underwater with their mortgages—a huge drop from the 12 million during the tough times following the Great Recession.

A Financial Safety Net This rise in equity is like a big, comfy financial pillow, especially for those who’ve owned their homes for a while. Think baby boomers who’ve seen their home value grow over the years.

Selma Hepp, the chief economist at CoreLogic, shared some numbers that’ll make your jaw drop. On average, homeowners had about $298,000 in equity by the end of 2023. Plus, with loan-to-value ratios hitting record lows, it means most homeowners have a solid stash of equity they can tap into if needed.

Where the Gains Are Greatest Some states really hit the jackpot with equity gains. Homeowners in Rhode Island, New Jersey, and Massachusetts saw their equity climb by more than $50,000 on average. That’s a lot of extra cash!

The Ups and Downs of Equity The report also shone a light on the flip side—negative equity. But the news is still good: fewer homes are worth less than their mortgages. If home prices keep going up, even more homeowners will find themselves in positive equity territory. But a dip in prices could push some back under.

Wrapping Up This surge in homeowner equity is a big win, offering peace of mind and financial breathing room for many. As your go-to guide in the mortgage world, I’m here to help you navigate these opportunities and make the most of your home’s value.

Got questions or looking for advice? Reach out to me, Chenine Lozano, at 562-762-7511. Let’s make your homeownership journey a success together.