Rising home values also make it increasingly tougher for would-be homeowners to buy.Homeowners in California, Washington state and Idaho saw among the biggest average equity increases in the second quarter: $116,000 in California, $103,000 in Washington state and $97,000 in Idaho.The surge in homeowner equity gains follows a record run up in U.S. Average homeowner equity jumped nearly 20% in the first quarter from a year earlier.Home equity growth can have broad impacts on the economy, giving homeowners more financial flexibility to spend on big purchases or build a nest egg. Homeowners with a mortgage, which is about 63% of all homes, CoreLogic said. That’s the highest quarterly average gain in home equity since the second quarter of 2010, the firm said.That works out to nearly $3 trillion in equity gained by U.S.That’s a more modest gain than earlier this year, when year-over-year increases were running at 20%-25%.“It seems that there was that shift from July to August where there starts to be a little bit of pushback in terms of where prices have gone,” said Ali Wolf, chief economist at Zonda Economics, a real estate industry tracker.Wolf projects that U.S. Homes rose 14.9% in August from a year earlier to $356,700. The National Association of Realtors’ most recent housing market snapshot showed the median home price of previously occupied U.S.
A year ago they made up 33% of buyers.The U.S. First-time buyers accounted for 29% of home sales in August, according to the National Association of Realtors. “Those who have chosen not to purchase a home or have been unable to are finding it very hard to enter the market now, and in a lot of cases these individuals are missing out on wealth accumulation.”The surge in home prices this year has made it tougher for would-be homeowners to buy. And it can give homeowners financial flexibility to borrow against their equity to pay off high-interest debt or finance large purchases, such as home improvement projects, which can give a boost to the economy.“It is good for wider economic growth, but there’s an ugly side to today’s level of pricing,” Wolf said. Still, the outsized growth in homeowner equity this year will have ripple effects for the broader economy, and the housing market.Rising homeowner equity creates a buffer for borrowers against potential financial hardship, such as job loss. Sony ps2 emulator macMetropolitan areas, Chicago had the biggest share of homes with negative equity in the April-June quarter at 5.2%, the firm said. That’s down 30% from the same quarter last year.Among U.S. Homes with a mortgage, were in negative equity, CoreLogic said. Also known as being in negative equity, that can happen when a home’s value declines, or when the size of the mortgage increases, say when someone takes out a home equity loan.At the end of the second quarter, 1.2 million homes, or 2.3% of all U.S.
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