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The percentage of equity-rich mortgaged properties declined slightly in the first quarter of this year.

According to ATTOM’s latest U.S. Home Equity & Underwater Report, 47.2% of mortgaged residential properties were considered equity-rich in the first quarter. This is down slightly from the 48% level in the previous quarter and was also the second straight quarterly decline following 10 consecutive gains.

ATTOM also determined the number of equity-rich mortgage-payers dropped on a quarterly basis in 32 of the 50 states.

However, only 3% of mortgaged homes were considered seriously underwater in the first quarter – virtually unchanged from 2.9% in the prior quarter and below the 3.2% level in the first quarter of 2022.

“Homeowners across the U.S. continue to sit in a far better position than they were just a few years ago, with historically elevated levels of wealth built up in their properties. However, the recent downturn in the housing market is chipping away at the bounty they reaped from a decade of price surges,” said Rob Barber, CEO for ATTOM. “Home equity has fallen modestly amid a larger slump in profits homeowners are getting when they sell. It’s still too early to call this a long-term trend, and there are reasons to hope for a market turnaround this year. For now, though, various measures suggest that the best of the boom may be behind us.”