ATTOM, the curator of the nation’s premier real estate database, today released its third quarter 2021 equity and seabed report, which shows that 39.5% of mortgaged residential properties in the United States were considered equity-rich in the third quarter, meaning that the combined estimated amount of loan balances secured by these properties did not exceed 50% of their estimated market value.
The share of mortgaged homes that were equity-rich in the third quarter of 2021 – one in three – was up from 34.4% in the second quarter of 2021 and to 28.3% in the third quarter of 2020.
The report also shows that only 3.4% of mortgaged homes, or one in 29, were considered seriously underwater in the third quarter of 2021, with a combined estimated property-backed loan balance of at least 25% more. than the estimated market for the property. value. That was down from 4.1% of all U.S. homes with a mortgage in the previous quarter and down to 6%, or 17 properties, a year ago.
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Across the country, 46 states, including the District of Columbia, saw stock wealth levels rise from the second to third quarters of 2021, while seriously underwater percentages declined in 39 states. Year over year, fairness 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 biggest 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 crisis. Coronavirus pandemic that struck early last year.
The increases in equity in the months July through September came as the nationwide median home price rose 4% quarterly and 16% year-on-year, to a new record high of 310,500 $. Median values ââhave increased by at least 10% per year in two-thirds of the country’s metropolitan areas. These ongoing price hikes continued to increase their home equity as they widened the gaps between what homeowners owed on their mortgages and the value of their properties.
Prices have continued to rise over the past year due to lower mortgage rates and the desire of many households to flee virus-prone areas for the perceived safety of a home and yard or to find more space to adapt to new lifestyles of working from home. This has generated a bubble of home buyers looking for a tight supply of properties for sale over the past year and a half, increasing demand and increasing home value and equity.
Some signs of a possible market slowdown have emerged recently in the form of declining housing affordability, increasing foreclosures and falling investor profits. But the price and stock gains in the third quarter shone as prime examples of how the housing market boom continues to intensify over its 10e right year.
âHomeowners in most of the United States could once again sit smiling in the third quarter and watch their balance sheets grow as soaring home prices pushed their equity levels ever higher. Among the best gains in two years, nearly four in ten owners found themselves in stock-rich territory, âsaid Todd Teta, chief product officer at ATTOM. âOf course, some uncertainty awaits us, as other key market barometers have been a bit shaky lately. And the coronavirus pandemic remains a threat. But there is no doubt that owners continue to profit greatly from the relentless increases in house prices that we see across the country. â
Western and Southern States show the greatest improvement in home equity
Eight of the top 10 states where the equity-rich share of mortgaged homes increased the most between the second quarter of 2021 and the third quarter of 2021 were in the West and the South. The states with the largest increases were Utah, where the share of mortgaged homes considered to be equity-rich rose from 45.5% in the second quarter of 2021 to 60.9% in the third quarter, Arizona ( from 39.7 percent to 53.2 percent), Idaho (up 54.2 percent to 65.1 percent), North Carolina (up 28.4 percent to 38.6 percent), North Carolina (up 28.4 percent to 38.6 percent) percent) and Nevada (up 34.9 percent to 44.9 percent).
The states with the richest equity share of mortgaged homes declined the most from the second to third quarters of this year were Kansas (down 31.4 percent to 27.1 percent), Wyoming (down from 29.5 percent to 25.8 percent), Mississippi (down from 26.6 percent to 23 percent), Montana (down 40.8 percent to 38.5 percent) and California (down 53.8 percent to 52.1 percent).
South and Midwest Post Biggest Declines in Underwater Properties
The top 10 states with the largest declines in home equity from the second quarter of 2021 to the third quarter of 2021 in the percentage of mortgaged homes considered seriously underwater were in the South and Midwest. They were led by West Virginia (share of seriously underwater mortgaged homes down 11.7% to 7.1%), Ohio (down 7.8% to 5.4%), l Arkansas (down 8.8% to 7%), Michigan (down 5.4%). at 3.7 percent) and Kentucky (down 7.7 percent to 6.2 percent).
The states where the percentage of seriously underwater homes increased the most from the second to third quarters of 2021 were Mississippi (7.6% to 17.7%), Wyoming (3.6% to 11.5 %), Maine (3.4% to 5.8 percent), Kansas (up 4.6 percent to 6.7 percent) and Montana (up 3 percent to 3.6 percent).
Highest percentage of home equity still in the West; the smallest in the Midwest and South
The West continued to have much higher levels of equity-rich properties than other regions in the third quarter of 2021. Eight of the top 10 states with the highest levels in the third quarter were in the West. , led by Idaho (65.1 percent of mortgage homes were high in equity), Vermont (61.2%), Utah (60.9%), Washington (56.2%) and Arizona (53.2%).
Thirteen of the 15 states with the lowest percentages of equity-rich properties in the third quarter of 2021 were in the Midwest and South, led by Louisiana (19.8% of mortgaged homes), Illinois (21, 5%), Alaska (23%), Mississippi (23%) and Oklahoma (24.7%).
Among 106 metropolitan statistical areas with more than 500,000 residents, 14 of the 15 with the highest shares of mortgage-rich equity-rich properties in the third quarter of 2021 were in the West. The top five were Austin, TX (66.9% high in stocks); Boise, ID (66.7%); San JosÃ©, California (65.8%); Ogden, UT (62.8%) and Spokane, WA (62.2%). While Austin again led the South, the Northeast region leader remained Boston, MA (48.9%), and the Midwest’s top subway remained Grand Rapids, MI (44.8%).
The 10 metropolitan areas with the lowest percentages of equity-rich properties in the third quarter of 2021 were in the Midwest and South, led by Jackson, MS (10.2% of mortgage homes were equity-rich); Baton Rouge, LA (16.2%); Wichita, KS (17.6 percent); Little Rock, AR (20.2%) and Virginia Beach, VA (21.5%).
The share of mortgaged homes considered to be equity-rich increased from the second quarter of 2021 to the third quarter of 2021 in 95 of the 106 metropolitan areas analyzed (90%), while all but two (98% improved year to year). ‘other.
The main counties rich in equity capital still grouped in the Western region
Of the 1,605 counties that had at least 2,500 homes with mortgages in the third quarter of 2021, 15 of the top 20 equity-rich locations were in the Western region.
The counties with the highest share of equity-rich properties were Nantucket County, MA (76.6% equity-rich); Blaine County, ID (north of Twin Falls) (74.5%); Dukes County (Martha’s Vineyard), MA (74.3%); Valley County, ID (north of Boise) (74 percent) and Gem County, ID (outside of Boise) (71.8 percent).
The counties with the smallest share were Campbell County (Gillette), WY (7.3 percent stock-rich); Geary County (Junction City), KS (7.4%); Madison County, MS (north of Jackson) (8.2%); Hoke County, North Carolina (outside of Fayetteville) (9.6%) and Cowley County, KS (outside of Wichita) (11%).
At least half of all properties considered equity rich in more than 1,900 zip codes
Of the 8,657 US zip codes that had at least 2,000 residential properties with mortgages in the third quarter of 2021, there were 1,948 where at least half of the mortgaged properties 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%).
Highest seriously submarine shares still in the South and Midwest
Nine of the 10 states with the highest mortgage shares that were seriously underwater in the third quarter of 2021 were in the South and Midwest, led by the Mississippi (17.7 percent severely submarine), the Wyoming (11.5%), Louisiana (10.7 percent), 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%).
Of the 106 metropolitan statistical areas with more than 500,000 residents, those with the largest share of seriously underwater mortgages in the third quarter of 2021 included Jackson, MS (37.3%); Baton Rouge, LA (11.6%); Wichita, KS (8.7 percent); Scranton, PA (8.4%) and New Orleans, LA (8.2%).
Of the 106 metropolitan areas, 93 (88%) showed a decrease in seriously undersea property levels from the second to third quarters of 2021. Seriously undersea rates have fallen, year over year, in 102 of these areas (96%).
Over 25% of seriously underwater residential properties in just 27 zip codes
Of the 8,657 U.S. zip codes that had at least 2,000 homes with mortgages in the third quarter of 2021, there were only 27 locations where more than 25 percent of mortgaged properties were seriously underwater. Four of the 27 were in Cleveland, OH.
The top five zip codes with the largest shares of seriously underwater properties in the third quarter were 04330 in Augusta, ME (72.5% of mortgaged homes were seriously underwater); 66441 at Junction City, KS (64.9%); 39046 in Canton, MI (48.9%); 44108 in Cleveland, OH (47.7 percent) and 39401 in Hattiesburg, MI (47.4 percent).