More than 14 million residential properties in the U.S. were considered equity rich during the third quarter, according to ATTOM Data Solutions’ 2019 U.S. Home Equity and Underwater Report.
Those 14.4 million properties represented 26.7 percent of the 54 million mortgaged homes in the U.S., according to the report. ATTOM said 3.5 million (6.5 percent) mortgaged homes in the third quarter were considered seriously underwater, with a combined estimated balance of loans secured by the property at least 25 percent more than the property’s estimated market value.
“The latest numbers reveal another profound impact of the extended housing boom, as far more homeowners find themselves on the right side of the balance sheet instead of the wrong side,” ATTOM Chief Product Officer Todd Teta said in a release. “This is a complete turnabout from what was happening when the housing market crashed during the Great Recession.
“There are notable equity gaps between regions and market segments,” Teta added. “But as home values keep climbing, homeowners are seeing their equity building more and more, while those with properties still worth a lot less than their mortgages represent just a small segment of the market.”
The states with the highest share of equity rich properties in the third quarter were California (40.8 percent); Hawaii (39.2 percent); Vermont (39.0 percent); New York (35.7 percent); and Washington (35.6 percent), the report found.
The metropolitan areas with the highest shares of equity rich properties in the third quarter were San Jose, Calif. (62.7 percent); San Francisco (51.1 percent); Los Angeles 46.6 percent); Santa Rosa, Calif. (46.5 percent); and Honolulu (39.4 percent).
The report identified the states the highest shares of mortgages that were seriously underwater in the third quarter as Louisiana (16.5 percent); Mississippi (15.8 percent); West Virginia (14.2 percent); Iowa (14 percent); and Arkansas (13.1 percent).
The metropolitan areas with the highest share of mortgages that were seriously underwater in the third quarter were Youngstown, Ohio (16.8 percent); Baton Rouge, La. (15.7 percent); Scranton, Pa. (14.3 percent); Cleveland (14 percent); and Toledo, Ohio (13.8 percent).