Equity-Rich Properties Reach New High in 2018
ATTOM Data Solutions, Irvine, Calif., reported more than 14.5 million equity-rich U.S. properties at the end of 2018, an increase of 834,000 from a year ago to the highest level since 2013 when it began tracking data.
The company’s Year-End 2018 U.S. Home Equity & Underwater Report said the 14.5 million equity rich properties in the fourth quarter represented 25.6 percent of all properties with a mortgage, down slightly from 25.7 percent in the previous quarter but up from 25.4 percent a year ago.
The report also showed more than five million U.S. properties remained seriously underwater, where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That share remained unchanged from the previous quarter and down from 9.3 percent a year ago.
“With homeowners staying put longer, homeownership equity will most likely continue to strengthen,” said Todd Teta, chief product officer with ATTOM Data Solutions. “Those that are seriously underwater may find themselves coming up for air as they continue to pay off excessive legacy mortgages or sell. This report helps to showcase a story of the West coast markets having the highest share of equity rich homeowners versus the South and Midwest markets, who continue to have stubbornly high rates of seriously underwater homeowners.”
Other report date:
–States with the highest share of mortgages that were seriously underwater were Louisiana (20.8 percent); Mississippi (16.9 percent); Arkansas (15.9 percent); Illinois (15.6 percent); and Iowa (15.2 percent).
–Among 98 metropolitan statistical areas analyzed in the report, those with highest share of mortgages seriously underwater were Baton Rouge, La. (20.7 percent); Youngstown, Ohio (19.0 percent); New Orleans (19.0 percent); Toledo, Ohio (18.0 percent); and Scranton, Pa. (17.7 percent).
–States with the highest share of equity rich properties were California (43.6 percent); Hawaii (39.3 percent); New York (34.2 percent); Washington (34.2 percent); and Oregon (32.9 percent).
–Metro areas with the highest share of equity rich properties were San Jose, Calif. (72.0 percent); San Francisco (60.7 percent); Los Angeles (48.5 percent); Honolulu (40.2 percent); and Oxnard, Calif. (39.2 percent).
–Counties with the highest share of equity rich properties were San Mateo, Calif. (75.9 percent); Santa Clara, Calif. (73.0 percent); San Francisco (71.4 percent); Pasquotank, N.C. (65.7 percent); and Alameda, Calif. (62.7 percent).
