Benzinga
Homeowners earned more than $ 1.5 billion in capital during the fourth quarter of 2020
According to US homeowners with mortgage loans, their shares rose 16.2% year-on-year in the fourth quarter of 2020, according to new data from Corelogic Inc (NYSE: CLGX). This represents an average year-on-year profit of $ 26,300 per homeowner and a collective share gain of more than $ 1.5 billion. What happened: the new data covers about 62% of all residential properties. States with strong house price growth and high house prices recorded the largest share gains in the fourth quarter, especially California (with an average share gain of $ 54,500), Idaho ($ 48,500) and Washington ($ 47,200). At the other end of the spectrum, North Dakota experienced the lowest average equity gain in the fourth quarter at $ 7,900. In the fourth quarter, negative equity levels decreased year-on-year by 21% to 1.5 million homes, or 2.8% of all encumbered properties. The national value of negative equity was approximately $ 280.2 billion at the end of the fourth quarter, up approximately $ 7.5 billion, or 2.6%, from $ 287.7 billion a year earlier. “Compared to a year earlier, house prices rose sharply in December 2020 – 9.2%, according to the CoreLogic house price index – which increased the amount of home ownership for the average homeowner by more than $ 200,000,” said Frank Nothaft. chief economist for CoreLogic. “This growth in equities has enabled many families to finance home improvements, such as adding an office or study, which further contributes to the record level of last year’s spending on home improvements.” What Happens Elsewhere: Separately, Redfin Corp (NASDAQ: RDFN) reported that the asking prices of newly listed homes for the four-week period ending March 7 peaked at $ 349,975, a 10% increase over the same time a year ago. New offers of houses for sale decreased by 17% from a year ago, while active offers – defined as the number of houses offered for sale at any stage during the period – decreased by 41% to a new low of all times, which is the largest decline in the five years Redfin has tracked this data. During the seven-day period ending March 7, 59% of the homes sold within two weeks or less, while 4% of the homes that were under contract had an accepted offer within one week, the highest point for this criterion was. ; 48% are sold within a week or less. (Photo by Pexels / Pixaby) See more from Benzinga Click here for options for trading on Benzinga, CEO of Lordstown Motors, responds to short selling; EV shares fall by 16% Netflix password share: here’s why it’s a big deal © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.