Illinois lagging in home equity gains

[September 28, 2021]  By Kevin Bessler

(The Center Square) – Illinois home owners are not enjoying the same home equity gains being seen around the rest of the country.

CoreLogic, a global property information, analytics and data-enabled solutions provider, released its Homeowners Equity Report for the second quarter of 2021. The report shows U.S. homeowners with mortgages have seen their equity increase by 29.3% year over year, with an average gain of $51,500 per borrower since the second quarter of 2020.

Frank Nothaft, chief economist for CoreLogic, said the group has been compiling the report for 45 years and the home price increases are unprecedented.

“This 12 months through July 2021 is the fastest, highest growth in home prices in our national index we have ever recorded,” Nothaft said.

In Illinois, the average gain in home equity is $24,000, surpassing only Iowa, Oklahoma and Louisiana. In California, the average year-over-year equity gain per borrower is $116,000.

“Home prices are lower in Illinois than in California, but partly it also reflects the fact that home prices didn’t grow as rapidly,” Nothaft said.

The number of underwater homes decreased nationally over that same time period – by 24%. In the second quarter of 2020, 1.8 million homes, or 3.3% of all mortgaged properties, were in negative equity. That number decreased by 30%, or 520,000 properties in the second quarter of 2021.

According to a CoreLogic consumer survey, 59% of respondents feel extremely confident in their ability to keep current on their mortgage payments in the coming year.

“Home equity wealth is at a record level and will bolster economic activity in the coming year,” Nothaft said. “Higher wealth spurs additional consumer expenditures and also supports room additions and other investments in homes, adding to overall economic activity.”