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More Homeowners Have High Levels of Equity


More and more homeowners can be considered “equity rich,” according to ATTOM Data Solutions’ new U.S. Home Equity and Underwater Report.


More than 13.1 million homeowners have a loan-to-value ratio of 50 or lower on their residence or 23.4 percent of all homeowners with a mortgage.


Areas with high levels of equity-rich homeowners include: San Jose, California (55.7 percent); San Francisco (49.8 percent); Honolulu (39.3 percent); Los Angeles (38.2 percent); and Pittsburgh (34.5 percent).


“Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016, and homeowners who sold in the third quarter had owned their home an average of 7.94 years—a new high in our data and substantially higher than the average homeownership tenure of 4.26 years pre-recession. As homeowners stay in their homes longer before moving up, they are amassing more home equity wealth.”


“Close to one in every five U.S. homeowners with a mortgage is now equity rich thanks to a combination of rising home prices and lengthening homeownership tenures,” said Daren Blomquist, senior vice president at ATTOM Data Solutions, the new parent company of RealtyTrac.


Meanwhile, about 10.8 percent of all U.S. homeowners with a mortgage can be considered seriously underwater—that is, they have a loan-to-value ratio of 125 or higher. In 2012, about 28.6 percent were seriously underwater.


Areas with high rates of seriously underwater homeowners include Las Vegas (25 percent); Akron, Ohio (21.7 percent); Cleveland (22.8 percent); Toledo, Ohio (21.7 percent); Dayton, Ohio (20.2 percent); Detroit (20 percent); and Lakeland-Winter Haven, Florida (20 percent).