The average U.S. homeowner gained about $15,000 in home-equity during 2017, according to the latest CoreLogic Equity Report. Home-equity wealth gains last year were the greatest since 2013, CoreLogic’s Frank Nothaft reports. In high-cost areas with fast appreciation, home equity gains exceeded $15,000.
[T]he average home owner in California and Washington had a wealth gain of about $40,000, reflecting the high price of homes in California and the rapid appreciation in Washington. In contrast, the average owner in Louisiana had little change in their housing wealth, given the much lower prices and more modest price growth.
Nothaft notes that higher home-equity wealth spurs additional consumption spending. While estimates vary, an IHS Market analysis suggests a $15,000 average equity gain translates to an additional $750 in consumption spending per household.Read More