ATTOM Data Solutions released its Q2 2017 U.S. Home Equity & Underwater Report on August 17, 2017 showing that at the end of the second quarter of 2017 there were more than 14 million (14,038,372) U.S. properties that were equity rich; where combined loan amounts secured by the property was 50 percent or less of the estimated market value of the property. This is up by nearly 320,000 properties from the previous quarter and up by more than 1.6 million properties from a year ago.
The 14 million equity rich U.S. properties represented 24.6 percent of all U.S. properties with a mortgage, up from 24.3 percent in the previous quarter and up from 22.1 percent in Q2 2016. With the highest share of equity in San Jose, San Francisco, Los Angeles, California; Honolulu, Hawaii and Portland, Oregon. There were 5.4 million seriously underwater properties in Q2 2017, down 1.2 million from a year ago.
Click on graph for larger image. Graph will open in separate tab.
The report also shows that more than 5.4 million (5,433,684) U.S. properties were still seriously underwater; where the combined loan amount secured by the property was at least 25 percent higher than the property’s estimated market value, at the end of Q2 2017, down by more than 64,000 properties from the previous quarter and down by more than 1.2 million from a year ago.
The 5.4 million seriously underwater properties represented 9.5 percent of all properties with a mortgage, down from 9.7 percent in the previous quarter and down from 11.9 percent in Q2 2016.
“An increasing number of U.S. homeowners are amassing impressive stockpiles of home equity wealth, enjoying the benefits of rapidly rising home prices while staying conservative when it comes to cashing out on their equity. Homeowners are staying in their homes nearly twice as long before selling as they were prior to the Great Recession, and the volume of home equity lines of credit are running about one-third of the level they were at during the last housing boom,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “However, this home equity wealth is unevenly distributed across different geographies, value ranges, occupancy statuses and lengths of ownership, with a disproportionately high equity rich share among high-end properties, investor-owned properties and properties owned for more than 20 years.”
States with Highest Share of Equity Rich Properties
States with the highest share of equity rich properties at the end of Q2 2017 were Hawaii (38.3 percent); California (36.6 percent); New York (34.2 percent); Vermont (33.5 percent); and Oregon (32.2 percent).
Among 91 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of equity rich properties were San Jose, California (52.0 percent); San Francisco, California (47.0 percent); Los Angeles, California (40.0 percent); Honolulu, Hawaii (40.0 percent); and Portland, Oregon (35.0 percent).
Among 7,192 U.S. ZIP codes with at least 2,500 people, those with the highest share of equity rich properties were 15201 in Pittsburgh, Pennsylvania (74.4 percent); 11,20 in Brooklyn, New York (74.2 percent); 11228 in Brooklyn, New York (71.6 percent); 78207 in San Antonio, Texas (71.3 percent); and 11355 in Flushing, New York (71.1 percent).
Click on image for larger interactive map. Map will open in separate tab.
Profile of Equity Rich Properties
Some characteristics of the 14 million equity rich U.S. properties as of the end of Q2 2017:
- 44 percent of properties with an estimated market value over $750,000 were equity rich, compared to an equity rich rate of 29.6 percent for properties valued between $300,000 and $750,000; 21.0 percent for properties valued between $100,000 and $300,000; and 15.5 percent for properties valued up to $100,000.
- 45.7 percent of properties owned more than 20 years were equity rich, while only 10 percent of properties owned less than a year were equity rich.
- 27.1 percent of non-owner occupied (investment) properties with a mortgage were equity rich as of the end of Q2 2017 compared to 23.8 percent of owner-occupied properties.
Click on graph for larger image. Graph will open in separate tab.
Cities and States with Highest Share of Seriously Underwater Properties
States with the highest share of seriously underwater properties as of the end of Q2 2017 were Nevada (17.4 percent), Louisiana (17.1 percent); Illinois (16.8 percent); Ohio (16.5 percent); and Indiana (16.4 percent).
Among 91 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of seriously underwater properties were Cleveland, Ohio (21.8 percent); Baton Rouge, Louisiana (21.0 percent); Akron, Ohio (20.5 percent); Las Vegas, Nevada (20.2 percent); and Toledo, Ohio (20.2 percent).
Among 7,192 U.S. ZIP codes with at least 2,500 properties with mortgages, those with the highest share of seriously underwater properties were 89109 in Las Vegas, Nevada (69.9 percent); 48235 in Detroit, Michigan (69.1 percent); 60466 in Park Forest, Illinois (68.4 percent); 08611 in Trenton, New Jersey (68.0 percent); and 48228 in Detroit, Michigan (67.5 percent).
Profile of Seriously Underwater Properties
Some characteristics of the 5.4 million seriously underwater U.S. properties as of the end of Q2 2017:
- 30.4 percent of properties with an estimated market value of $100,000 or less were seriously underwater compared to a seriously underwater rate of 9.1 percent for properties valued between $100,000 and $300,000; 4.9 percent for properties valued between $300,000 and $750,000; and 4.7 percent of properties valued above $750,000.
- 11.7 percent of properties owned between 10 and 15 years were seriously underwater, the highest share of any five-year period up to 20 years. Only 7.2 percent of properties owned more than 20 years are seriously underwater.
- 19.2 percent of non-owner occupied (investment) properties with a mortgage were underwater as of the end of Q2 2017 compared to only 6.8 percent of owner-occupied properties.
Definitions
Seriously underwater: Loan to value ratio of 125 percent or above, meaning the homeowner owed at least 25 percent more than the estimated market value of the property.
Equity rich: Loan to value ratio of 50 percent or lower, meaning the homeowner had at least 50 percent equity.
To read the original report click here.
About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
Report methodology
The ATTOM Data Solutions U.S. Home Equity & Underwater report provides counts of residential properties based on several categories of equity — or loan to value (LTV) — at the state, metro, county and zip code level, along with the percentage of total residential properties with a mortgage that each equity category represents. The equity/LTV calculation is derived from a combination of record-level open loan data and record-level estimated property value data.
0 Comments