Do you feel richer? If you own a D-FW home, you have more equity than a year ago

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Homeowners in North Texas can be forgiven for feeling a little richer.

On average, Dallas-Fort Worth homeowners have earned more than $ 35,000 in home equity over the past year, according to a new study from CoreLogic.

The rise in D-FW home equity comes as US homeowners gained $ 2.9 trillion in equity in the second quarter of this year, due to rising home values. Nationally, the average increase in equity for U.S. homeowners with mortgages was $ 51,500 per borrower, CoreLogic found.

“Real estate wealth is at an all time high and will boost economic activity over the coming year,” said Dr Frank Nothaft, chief economist at CoreLogic, in the new report. “Higher wealth drives additional consumer spending and also supports room additions and other home investments, adding to overall economic activity.”

With D-FW home prices nearing an all-time high, homeowners are left with larger stakes when they refinance or sell.

For the entire state of Texas, the average increase in second quarter home equity was $ 31,000.

Only about 1.4% of D-FW area homeowners were upside down on their mortgages – due to more than second-quarter property value. Nationally, 2.3% of homes with loans are underwater.

With so much average equity in housing, housing analysts don’t expect a wave of foreclosures due to the lingering impact of the COVID-19 pandemic.

“Growing homeowners’ equity provides a solid financial cushion for tens of millions of Americans. For those most affected by the pandemic, equity gains will help play a critical role in avoiding foreclosure, ”said Frank Martell, President and CEO of CoreLogic. “Based on the expected increases in economic activity and home values ​​over the next year, we expect to see further equity gains and a corresponding decline in negative equity, forbearance rates. and locking. “


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