A national report released by data analyst CoreLogic showed Hawai’i had the fourth greatest home equity gain of all states in the nation — an average increase of nearly $30,000.
Over the last year, home values appreciated because the economy continues to strengthen — which means many homeowners, especially those in Hawai’i, are raking in equity. Across the country, California led the way with an average gain of $49,000, followed by Washington with $41,000 and Nevada with $32,000.
Generally, western states saw the highest gains, while the average homeowner nationwide gained $16,200 in home equity. The report examined year-over-year equity gain per borrower from the second quarter of 2017 to same period in 2018.
“When aggregated across all homeowners that totals almost $1 trillion in gains in home equity wealth,” the report read. One of the group’s economists said that homeowners will more than likely put those increases back into the economy.
Additionally, the report found that the percentage of mortgages in negative equity - which means owners borrowed more than their homes' worth — dropped to 4.3 percent. In Hawai’i, that percentage hovered at just 1.7 percent. Alaska was tied with Hawai’i, while just four other states had a lower percentage of mortgages underwater.
For Hawai’i homeowners, this positive news may come as no surprise. A recent report from the Realtors Association of Maui showed that median home prices surged to $774,000 in October — an increase of more than $105,000 from that same time the year before. That’s an average boost of almost 16 percent.