A new report from ATTOM Data Solutions found 16.7 million residential properties in the United States were considered equity-rich during the third quarter.
ATTOM’s U.S. Home Equity and Underwater Report said the number of equity-rich properties in the third quarter represented 28.3 percent, or about one in four, of the 58.9 million mortgaged homes in the United States. That level is up from 27.5 percent in the second quarter of 2020, 26.5 percent in the first quarter of 2020 and 26.7 percent in the third quarter of 2019.
The report said 3.5 million, or one in 17, mortgaged homes in the third quarter were considered seriously underwater, with a combined estimated balance of loans secured by the property of at least 25 percent more than the property’s estimated market value. That figure represents 6 percent of all U.S. properties with a mortgage, down from 6.2 percent in the prior quarter, 6.6 percent in the first quarter of 2020 and 6.5 percent a year ago.
“Homeowner equity in the third quarter added another pebble to the pile of markers showing that the U.S. housing market continues to defy the broad downturn in the economy this year,” ATTOM Chief Product Officer Todd Teta said in a release. “Home prices keep rising, boosting the balance sheets of homeowners throughout most of the country.
“With the foundation under the housing market still shaky as the coronavirus remains a threat, we will continue to monitor closely the various metrics, including equity,” he said. “But as it’s been throughout the pandemic, the market is strong, and homeowners remain in a position to benefit.”
According to the report, four of the 10 states with the biggest gains in the share of equity-rich homes in the third quarter were in New England, including Vermont (45.1 percent equity-rich); Maine (33.5 percent); South Dakota (30.3 percent); New Hampshire (26.7 percent); and Idaho (39.5 percent).
States where the share of equity-rich homes decreased or went up by the smallest amounts in the third quarter included California (39.7 percent equity-rich), Maryland (19.3 percent); Florida (27.5 percent), Nevada (28.8 percent); and Illinois (16.2 percent).
ATTOM said states with large declines in seriously underwater properties in the third quarter include Mississippi (12.6 percent seriously underwater); South Dakota (8.8 percent); Indiana (6 percent); Iowa (12.1 percent); and Connecticut (7.7 percent).
States where the percentage of seriously underwater homes rose in the third quarter included California (3.7 percent); Colorado (3 percent); Nevada (3.3 percent); Virginia (6.8 percent); and Florida (5 percent).