Colorado owners amassed a mean of $ 32,000 in dwelling fairness final yr

For homeowners in Colorado and across the country, 2020 was a year of enrichment unparalleled since 2013, when the nation bounced back from the housing crash.

US homeowners gained $ 1.5 trillion in home equity last year, an average of $ 26,300 per household, according to a report from real estate analyst CoreLogic. Colorado homeowners, reflecting above-average home prices in the state, fared even better, with home equity gains averaging $ 32,000 last year.

Of the Colorado metros that CoreLogic tracks, Boulder residents enjoyed the largest home equity profits at $ 46,673, followed by Colorado Springs at $ 33,284, Denver residents at $ 31,895 Fort Collins at $ 23,934 and Greeley residents at $ 20,118.

CoreLogic estimates the average home equity homeowners sat on late last year as follows: Boulder, $ 400,038; Colorado Springs, $ 188,312; Denver, $ 258,894; Fort Collins, $ 230,998; and Greeley, $ 177,428.

Strong increases in home prices boosted home equity, and the pandemic has been a big driver. Early last spring, the Federal Reserve intervened to stabilize mortgage markets and drive interest rates to historic lows, increasing affordability and demand.

For fear of infection with the virus in a cramped residential area, more and more apartment tenants were looking for their own apartment. The shift to remote work and school arrangements also encouraged the desire for more living space, both among existing owners and tenants. And the elimination of amenities such as concerts and shows also made living in urban apartments less attractive.

Congress allowed mortgage borrowers who were struggling to make monthly payments to refrain from, which eased pressure on them to sell and to keep a source of supply out of the market. When supply failed to meet increased demand, prices rose and the stock of homes for sale fell.

“This growing home-owned bank of personal wealth has been noticed by many, especially first-time buyers who want a piece of the pie. As a result, more of those currently renting may enter the market in the near future, ”said Frank Martell, President and CEO of CoreLogic, in the comments section on the report.

The equity gains in recent years, coupled with super-low interest rates, have allowed more borrowers to refinance. Some of that money went into a record year for home improvement spending, which in turn added home value.

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