California Housing Market: Owner Equity Drops $59,600 in Past Year

California housing market has taken a hit, with homeowners losing a significant amount of equity in the past year. According to CoreLogic, the average loss for an owner with a mortgage was $59,600, marking the first decline in home equity since 2012.

This trend is not unique to California, as 13 other states and the District of Columbia also experienced a drop in home equity. The average decline for the entire U.S. was $5,400, signaling a shift in the housing market.

The western region of the country saw some of the largest declines in equity, with Washington state leading the pack with a $74,300 drop. California followed closely behind with a 9.7% decrease in equity, reflecting the cooling off of what was once a red-hot housing market.

Despite these losses, homeowners with mortgages still have a significant amount of equity in their homes. In California, the average gap between a home’s value and its mortgage is $558,000, highlighting the resilience of the housing market in the state.

While the decline in home equity may raise concerns about the future of the housing market, experts like Selma Hepp, CoreLogic’s chief economist, remain optimistic. Hepp notes that recent price gains suggest that homeowners are regaining some of the lost equity, indicating a potential rebound in the market.

Overall, the housing market in California and across the country remains strong, with homeowners maintaining a healthy level of equity in their properties. Despite the recent losses, the market is showing signs of recovery, offering hope for both current homeowners and prospective buyers.