Nearly half (49.2%) of mortgaged residential properties were considered equity-rich in the second quarter, according to new data from ATTOM. This marked an increase from the 45.8% level recorded in the first quarter while matching the high point from the first quarter of 2023.
The second quarter’s increase also reversed the trend of three straight quarterly declines, with ATTOM noting it marked one of the best gains in the past five years.
The portion of mortgages that were equity-rich increased in 48 of the 50 states from the first quarter to the second quarter, commonly by more than two percentage points; equity-rich levels remained the same in Utah (staying at 54%) and South Dakota (staying at 51.5%). Measured annually, equity-rich levels were up in 31 states.
On the flip side, the share of home mortgages that were seriously underwater fell to 2.4% during the second quarter, or just one in 42. That was down from 2.7% in the prior quarter to the lowest level since at least 2019.
“Homeowner wealth took a notable turn for the better during the second quarter as equity levels piggybacked on some of the biggest home-price spikes we’ve seen in recent years,” said Rob Barber, CEO for ATTOM. “After a period where equity seemed stagnant or even declining, this brought another boost of good news for homeowners from the enduring housing market boom. Supplies of homes for sale remain limited these days and buyer demand is typically elevated during the Summertime. So, it should be no surprise if home values go even higher and take equity along for the ride.”
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