Nearly half (48.3%) of mortgaged residential properties were considered equity-rich in the third quarter, according to new data report from ATTOM. This is down from the recent peak of 49.2% in the second quarter but also up from 47.4% from one year earlier.
Equity-rich annual increases generally tilted more toward low- and mid-priced markets around the country, concentrated in the Midwest and Northeast regions, most notably in Vermont where the portion of mortgaged homes considered equity-rich increased from 79.8% in the third quarter of 2023 to 86.4% in the third quarter of 2024. At the other end of the scale, equity-rich levels declined more often in western states most notably in Utah (down year-over-year from 56.8% to 52.4%).
ATTOM also reported 2.5% of mortgaged homes were seriously underwater in the third quarter, slightly up from the 2.4% share in the second quarter and unchanged from one year earlier.
“Homeowner equity typically mirrors home-price trends, and the third quarter of this year followed that pattern,” said ATTOM CEO Rob Barber. “Equity remained elevated as the value of residential properties has surged consistently over the years. However, it held steady this quarter, reflecting the cooling of earlier sharp price increases. Despite the flat pattern, home equity keeps providing a significant boost to the economy in the form of financial leverage that tens of millions of households can use to finance major purchases or investments.”
Barber added that “we can expect to see small movements up or down over the coming months as the housing market moves into its annual slow season.”
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