California owners lost $33,000 in home equity in a year

"Remember that a home loan's financial leverage can boost ownership profits over the mortgage's life but also magnify the impact of price declines. My trusty spreadsheet reviewed Cotality's third-quarter report on homeowner equity, focusing on homes with mortgages and comparing home values with loan balances. Cotality tracked this measure of financial cushion for borrowers in 49 states (Vermont didn't have enough data) and the District of Columbia."

"Mortgaged homes across California lost an average $33,000 in equity in the year ended in September. That's more than double the national decline of $13,000. Equity declined in 33 states as home values fell in many areas over the past year. Florida had the biggest drop with average equity down $37,000. Next was the District of Columbia, off $36,000. After California, Washington state was off $32,000. Texas had the eighth-biggest dip, down $26,000."

Homeowner equity for mortgaged homes was measured across 49 states and the District of Columbia; Vermont lacked sufficient data. Nationally, average equity declined $13,000 over the year, with equity falling in 33 states. Florida experienced the largest drop, down $37,000, followed by the District of Columbia at $36,000, California at $33,000, Washington at $32,000, and Texas down $26,000. Northeastern states posted gains: Connecticut up $32,000, New Jersey up $28,000, Massachusetts and Rhode Island up $16,000, and Maine up $14,000. California still holds the largest per-home equity at $603,000 versus the national $299,000 average, while Louisiana, Oklahoma, and Iowa have the smallest equity stakes.

Read at The Mercury News