The State where people get rich at home – 24/7 Wall St.

Home values ​​have skyrocketed over the past year. In many markets, house prices have risen by double digits. The widely followed S&P Case-Shiller monthly house price index showed house prices jumped more than 15% in several major markets in March. The improvement is due to people leaving larger cities, especially on the east and west coasts due to the COVID-19 pandemic, strong middle and upper class incomes, and low mortgage rates. The value of home equity in most states also increased by more than $ 30,000 in the first quarter of 2021 compared to the same period a year ago. Nationally, home equity rose 19.6% to $ 1.9 trillion. according to CoreLogic.

CoreLogic researchers commented: “While the coronavirus pandemic has created economic uncertainty for many, the continued acceleration in home prices over the past year has meant that existing homeowners have seen a noticeable increase in value. net of their home. ” He pointed out how this contrasts with the residential real estate slump of 2007 and 2008 at the height of the Great Recession. They added, “In the first quarter of 2021, the average homeowner earned about $ 33,400 in equity over the past year.”

The state where home equity increased the most was Idaho at $ 70,900. One theory about the increase is that many people from major cities in California are moving there. However. two west coast states came next. California’s figure was $ 69,600 and Washington’s was $ 65,800. Three other western states have done very well. Arizona stocks were worth $ 51,000 in the first quarter compared to last year. The number increased by $ 53,000 in Utah and $ 50,000 in Montana.

The state that did the worst was North Dakota, where home equity rose only $ 8,400. The other states at the bottom of the list were Iowa at $ 11,000 and Oklahoma at $ 18,000. It is not known why these states were at the bottom of the list.

It remains to be seen what happens to home equity for the remainder of the year. So far, most of the research published on this topic indicates that this trend will continue.

Click here to read This county has the most expensive homes in America

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About Robert Valdivia

Robert Valdivia

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