Wednesday April 17, 2024

Good news for homeowners: Rhode Island, New Jersey among top US states with biggest gain in home prices

US has witnesses a rise in prices of homes that is a reason to make homeowners happy as their home equity is increasing

By Web Desk
March 12, 2024
A house on sale in the USA. — AFP File
A house on sale in the USA. — AFP File

Homeowners with mortgages gained 8.6% more equity in their homes in the last quarter of 2023. This is an average increase of thousands of dollars per household.

Among all states of America, Rhode Island, New Jersey, and Massachusetts are witnessing the biggest gains in houses value.

Homeowners across the US saw a big jump in their home equity in 2023. This is because the typical value of homes has been going up. Imagine a bunch of people getting richer because their houses are worth more now.

Think of your home equity like the difference between what your house can sell for and how much you still owe on your mortgage. If the house price goes up, so does the equity, like getting a bonus in your pocket.

This extra cash from home equity is helpful.  Homeowners can put this extra money towards things they need. This could be fixing up their house, paying for college, or even putting a down payment on a new home.

 Owning a home is a major way many Americans build wealth over time.

Here are the top 10 states where homeowners gained the most equity:

  1. Rhode Island
  2. New Jersey
  3. Massachusetts
  4. California
  5. New Hampshire
  6. Connecticut
  7. Maine
  8. Florida & Virginia (tie)
  9. Washington

Texas is the only state where homes lost equity.

Experts view this rise in equity positively. Homeowners now have more financial reserves they can use if needed. Fewer homeowners are underwater on their mortgages, which is also a good sign.

Even with rising mortgage rates and home prices, homeowners have a reason to be happy as their home equity is increasing, which can be very helpful.