Equity Rich Properties Top 14.5 Million in 3Q

ATTOM Data Solutions, Irvine, Calif., said 14.5 million U.S. properties were “equity rich” in the third quarter, up by more than 433,000 from a year ago, representing nearly 26 percent of all properties with a mortgage.

The company’s quarterly U.S. Home Equity & Underwater Report showed equity rich properties were up from 24.9 percent in the previous quarter but down from 26.4 percent a year ago. It also reported 4.9 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 8 share of seriously underwater homes was down from 9.3 percent in the previous quarter but up from 8.7 percent a year ago.

“As homeowners stay put longer, they continue to build more equity in their homes despite the recent slowing in rates of home price appreciation,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “West coast markets along with New York have the highest share of equity rich homeowners while markets in the Mississippi Valley and Rust Belt continue to have stubbornly high rates of seriously underwater homeowners when it comes to home equity.”

(The Mortgage Bankers Association will release its 3rd Quarter National Delinquency Survey this morning at 10:00 a.m. ET. The NDS, conducted since 1953, covers 38 million loans on one- to four- unit residential properties. Loans surveyed were reported by more than 100 lenders, including mortgage banks, commercial banks and thrifts.)

Other report highlights:

–States with the highest share of seriously underwater properties were Louisiana (21.3 percent); Mississippi (16.2 percent); Iowa (15.5 percent); Arkansas (15.3 percent); and Illinois (15.1 percent).

–Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, La. (20.7 percent); Youngstown, Ohio (18.7 percent); New Orleans (18.6 percent); Scranton, Pa. (18.3 percent); and Toledo, Ohio (17.7 percent).

–Among 7,290 U.S. zip codes with at least 2,500 properties with mortgages, there were 26 zip codes where more than half of all properties with a mortgage were seriously underwater, including the Detroit, Milwaukee, Saint Louis, Atlantic City and Cleveland metropolitan statistical areas. Top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, N.J. (71.0 percent seriously underwater); 63137 in Saint Louis (66.5 percent); 60426 in Harvey, Ill. (64.2 percent); 38106 in Memphis, Tenn. (60.7 percent); and 44105 in Cleveland (59.2 percent).

–States with the highest share of equity rich properties were California (42.5 percent); Hawaii (39.4 percent); Washington (35.3 percent); New York (34.9 percent); and Oregon (33.6 percent).

–Metros with the highest share of equity rich properties were San Jose, Calif. (73.9 percent); San Francisco (59.8 percent); Los Angeles (47.6 percent); Seattle (41.2 percent); and Honolulu (40.8 percent).

–ATTOM reported 417 zip codes where more than half of all properties with a mortgage were equity rich. Top five zip codes were all in the California Bay area: 94087 in Sunnyvale (87.1 percent equity rich); 94085 in Sunnyvale (86.7 percent); 94086 in Sunnyvale (86.7 percent); 94063 in Redwood City (85.9 percent); and 95130 in San Jose (85.7 percent).