Rise in equity-rich properties in the third quarter


The most recent edition ATTOM Home Equity Report in the United States and Underwater for the third quarter shows that 39.5% of mortgaged residential properties were considered “high equity,” meaning that the remaining mortgage balance did not exceed 50% of their estimated market value.

In the third quarter, the share of mortgaged homes that were high in equity rose to 39.5%, from 34.4% in the second quarter and 28.3% year-on-year.

On the flip side, a meager number of homes – 3.4% or one in 29 – had mortgages considered “seriously underwater.” That number was down from 4.1% in the second quarter and 6.0% from the previous year.

Across the country, 46 states, including the District of Columbia, saw stock-rich levels rise from the second quarter to the third quarter of 2021, while seriously underwater percentages declined in 39 states, “the report said. “Year over year, equity levels rose in 49 states, including the District of Columbia, and seriously underwater portions fell in 47 states, including the District of Columbia. “

“Improvements at both ends of the equity scale represented some of the largest quarterly gains in two years and provided another sign of the strength of the US real estate market in the third quarter, even as the economy as a whole has only gradually recovered from the damage resulting from the coronavirus pandemic that struck early last year.

Among all postal codes (8,657 total postal codes), there are 1,948 areas where at least half of the mortgaged properties within their boundaries were high in equity.

“Forty-five of the top 50 were in California, Texas, Massachusetts and Idaho, with 11 of the top 20 in Austin. TX. They were run by zip codes 78746 in Austin, Texas (80.5% of mortgaged properties were high in equity); 94122 in San Francisco, California (80.1%); 78749 in Austin, Texas (79.7%); 94,116 in San Francisco, California (79.4%) and 78,733 in Austin, Texas (79.2%).

At the state level, nine of the 10 states with the highest mortgage shares that turned out to be seriously underwater in the third quarter of 2021 were in the South and Midwest, led by the Mississippi (17.7% seriously submarines), Wyoming (11.5%). ), Louisiana (10.7%), Iowa (8.4%) and Illinois (7.6%). The lowest percentages were in the West, led by Washington (1.2%), Utah (1.2%), Oregon (1.3%), Arizona (1.3% ) and Nevada (1.4%).

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