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Best Markets for a HELOC: 10 Metros Surging in Equity


Date: Jan 4, 2023


Have you heard the news? Home equity is up all around the United States as property prices continue to rise. If you’re a homeowner, your equity may be surging — especially if you live in these ten real estate markets.

According to CoreLogic’s most recent Homeowner Equity Insights report for Q2 2022, the average U.S. homeowner gained approximately $60,200 in equity during the past year. 

The report also demonstrated that U.S. homeowners with mortgages have seen their equity increase by a total of over $3.6 trillion in the last year, from Q2 2021 to Q2 2022. This marks a momentous 27.8% year-over-year increase in nationwide home equity. 

However, the report reveals that certain markets saw greater home equity growth than others. 

Real Estate Markets With Biggest Home Equity Gains

Homeowners in these ten high-equity markets may be in a particularly advantageous position to pursue a home equity line of credit. 

Top 10 States for Equity Growth in Q2 2022

According to CoreLogic, Hawaii, California, and Florida were the three states that saw the most extreme equity increases during the second quarter of 2022.

  • Hawaii saw average equity increases of $129,800.
  • California saw average equity increases of $117,000.
  • Florida saw average equity increases of $100,000. 

Following closely behind, these are the seven states that saw high levels of equity growth during Q2 2022:

  • Arizona — average equity increase of $89,000
  • Nevada — average equity increase of $82,000
  • Washington — average equity increase of $82,000
  • Colorado — average equity increase of $76,000
  • Utah — average equity increase of $71,000
  • North Carolina — average equity increase of $70,000
  • Tennessee — average equity increase of $69,000

A Look at 10 Metro Areas: Considering Negative Equity  

The CoreLogic Homeowner Equity Insights report also maps out the negative equity levels in ten of the largest cities in the United States. 

Negative equity means that there is more money owed on the mortgage loan than there is in accumulated equity. Being in a market with low percentages of negative equity can indicate healthier home equity levels for homeowners in that area. 

However, it does not necessarily mean that negative equity applies to your personal situation as a homeowner. It does point to a specific real estate market being rich in positive, tappable home equity. 

According to CoreLogic, negative equity has actually decreased nationwide during the second quarter of 2022. This is a good sign for homeowners who are making the most of their favorable financial position as asset owners. 

Here are the percentages of negative equity in ten of the country’s main metro areas.

  • Chicago — 3.6% negative equity 
  • New York — 2.3% negative equity 
  • Boston — 1.5% negative equity 
  • Washington — 1.3% negative equity 
  • Miami — 1.3% negative equity  
  • Houston — 1.3% negative equity  
  • Denver — 1.3% negative equity  
  • Las Vegas — 0.6% negative equity  
  • San Francisco  — 0.6% negative equity  
  • Los Angeles — 0.6% negative equity  

According to the report, Los Angeles and San Francisco in California and Las Vegas in Nevada are the least challenged by negative equity.

Find Out How Much Equity You Have 

Ready to tap into your home equity? Start by finding out exactly how where your home equity is at! 

We recommend using our reliable online home equity calculator. If you want to access your home equity, a HELOC is a fantastic secured borrowing solution that can give you quick access to the cash you need. 

Once you find out how much home equity you have accumulated, you can take the next steps to convert your equity into cash by pursuing a HELOC with Hitch

You can leverage your home equity through a HELOC to cover important expenses, pay down debts, and put yourself in a better financial position for years to come. 

Whether you’re interested in escaping from high-interest credit cards or need to fund a home renovation, college tuition, or a wedding, a HELOC can help provide you with the funds you need — and with Hitch, you can get that money fast. 

Hitch’s innovative fully digital process creates a streamlined, easy, and quick pre-qualification process. You can apply in minutes! 

Hitch will provide you with a dedicated loan officer whom you can consult with any questions that may arise during the application and underwriting processes. 

Charging little to no out-of-pocket fees, Hitch allows you to borrow up to 95% of your home's value minus your original mortgage balance. 

To help you take control over your financial future, Hitch also allows you to make interest-only payments on your HELOC balance for ten years. 

Ready to learn more about how Hitch is revolutionizing HELOCs? Click here. Already want to take the first steps? Get a quote from Hitch today!

Equal Housing OpportunityHitch Inc. NMLS 2383367
1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs. The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Our borrowers get their cash on average in 26 days. The time period calculation to get cash is based on the first 6 months of 2022 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend. The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.4. By inputting your phone and clicking the "Check my rate" button, you authorize your wireless carrier to use or disclose information about your account and your wireless device, if available, to us or our service provider for the duration of your business relationship, solely to help them identify you or your wireless device and to prevent fraud. Additionally, you authorize Hitch and its service providers to obtain your name, address, email and Social Security Number from Equifax in order to validate your identity and/or populate this form. See our Privacy Policy for how we handle your data.
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