Millions of homeowners may be a little less house-rich than they were a year ago, according to a new report.
Over the past year, the housing market has cooled from the torrid pace of home price gains that occurred during the pandemic. That means many of today’s homeowners have seen a modest drop in their home’s equity.
As of the second quarter of 2023, the average U.S. homeowner lost about $8,300 in home equity compared with one year prior, according to CoreLogic’s latest Homeowner Equity Insights report.
In total, equity for homeowners with a mortgage — about 63% of all properties — has fallen by $287.6 billion since the second quarter of 2022, a loss of about 1.7% year over year.
In a few states, losses are much worse than the national average. Here are the states where homeowners lost an average of five figures worth of equity.
Average homeowner equity loss in this state over the past year: $54,000 as of the end of the second quarter
Don’t shed a tear for homeowners in Washington: Although they have lost equity, they still rank among the folks with the most accumulated equity, thanks to rapid price appreciation during the past decade.
Average homeowner equity loss in this state over the past year: $51,000 as of the end of the second quarter
During the pandemic, Boise, Idaho, was one of the hottest housing markets in the nation. But the huge gains in Boise and other parts of Idaho were likely unsustainable over the long haul. Now, the balloon is losing a little air in the Gem State.
Average homeowner equity loss in this state over the past year: $48,000 as of the end of the second quarter
California is another Western state that saw home prices explode higher during the pandemic. Today, cities such as San Francisco and Oakland are among the “12 Places Where Home Sellers Are Losing Money Now.”
Other states with higher home equity losses
Here are the remaining states where homeowners, on average, lost five figures worth of equity in the past year, as of the end of the second quarter of 2023:
- Nevada: $41,000
- Utah: $41,000
- Arizona: $37,000
- Colorado: $29,000
- Montana: $28,000
- Oregon: $23,000
- Texas: $13,000
Homeowners in the District of Columbia also saw their equity drop significantly in the past year. Average homeowner equity there fell $26,000.