The high potential of residential real estate as an investment continues to be borne out by statistics, with US homeowners adding a cool $1.3 trillion to their home equity in 2023.
The CoreLogic Homeowner Equity Insights report reveals that in the fourth quarter of 2023, US homeowners with a mortgage – around 62% of all properties – saw equity rise by an aggregate 8.6% year-over-year. Baby boomers, who tend to have been in their homes for longer periods, have seen significant increases in their home equity.
Meanwhile, the share of those homes that are in negative equity fell 1.1% quarter-over-quarter to 1.8% of all mortgaged properties, around 1 million homes. Negative equity properties were down 15% year-over-year.
Those with equity gains were led by Rhode Island ($62,000), New Jersey ($55,000) and Massachusetts ($53,000), with the first two showing the largest year-over-year price appreciation in 2023 at 13.2% and 11.6% respectively.
The national annual average gain in home equity in the fourth quarter of 2023 was $24,000 but in the three Northeastern leaders this was above $50,000. Only Texas posted an annual equity loss (of $6,000).
“Rising home prices continue to fuel growing home equity, which, at $298,000 per average borrower remained near historic highs at the end of 2023,” said Selma Hepp, chief economist for CoreLogic. “By extension, at 43%, the average loan-to-value ratio of US borrowers has also remained in line with record lows, which suggests that the typical homeowner has notable home equity reserves that can be tapped if needed.”
President meets with ‘highly overrated globalist’ at the White House.
A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.
Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
