The average American owner has lost $ 9,200 in investment in the past year. It is not a collapse

The purchase of a house allows people to build equity and wealth over time by performing mortgage payments which reduce the loan director and increase the owner’s participation in the house until, ideally, that he is held. As a rule, real estate is appreciated, which adds to the wealth of the owner. In fact, possession of a house in recent years has been particularly lucrative as the prices of houses have increased spectacular during the pandemic.

But since the federal reserve increased aggressively in 2023, the assessment of home prices was largely stable or fell in the United States, the average American owner lost around $ 9,200 in equity in the past year, according to data from the Cotality Information Service Company (formerly Corelogic).

“The growth in equity has increased from an explosive gains period in the years surrounding in 2022, in a set,” a real estate advisor with Four Seasons Sotheby’s International Realty told International Realty Realty, Fortune. He explained that the transition is motivated by a combination of slowdown in prices appreciation, high borrowing costs and supply imbalances.

“It is not a collapse, but it is a market that digests several years of unsustainable growth,” he said. “This is a long -term market correction.”

However, the American average owner has another $ 307,000 in accumulated equity, according to Cotality. It is the third highest figure ever recorded, according to the chief economist of Cotality, Selma Hepp.

“Even on the markets where recent price reductions have reduced average capital, such as the District of Columbia and Florida, borrowers have an average of $ 350,000 and $ 290,000 in equity, respectively,” said Selma in a press release. The prices of houses in Washington, DC and Florida have dropped the most, down $ 34,000 and $ 32,000, respectively.

“In order not to seem disdainful of $ 9,200, the money is money (but) compared to equity at six -digit that many owners still hold, $ 9,200 do not seem to be disastrous,” said Jules Garcia, a real estate agent at Coldwell Banker Warburg, said Fortune. “It is certainly more worrying for the owners who bought in Market Peaks, know more pronounced local declines and have a higher sales emergency.”

“ Small haircut on a very full hair head ”

In zooming out, the total equity for borrowers with a mortgage totaled $ 17.5 billions of dollars in the second quarter of 2025, down 0.8% or 141.5 billion dollars from one year to the other, according to Cotality. Meanwhile, the number of houses with “negative equity”, which means when an owner owes more about his mortgage than the current market value of his house, increased 18% in annual sliding to 1.15 million houses.

“Although this is a worrying number, this is not yet a level of panic,” said Garcia. “It is a big warning sign, but there are still many local markets showing stability.”

To put it into perspective, many owners have added silver swords to their actions capital during the pandemic.

“Many households have added much more than during the pandemic, so this adjustment is a moderate correction rather than a crisis,” said Pond. “For the majority of owners with healthy loan / value ratios, it is a small haircut in addition to very complete hair.”

However, it is always important to continue to follow the appreciation of the house, especially in the event that the owner seeks to sell.

“The prices of this year’s houses have experienced the slowest growth rate since the major financial crisis of 2008. While the assessment remains modest and even decreases in certain markets, the accumulation of equity should follow suit,” said Hepp. “With the reduction in the rate of appreciation, seasonal fluctuations in house prices will have a pronounced impact on changes in actions.”

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