Roughly half (49%) of U.S. mortgaged residential properties were considered equity-rich in the second quarter, according to new data from ATTOM. This is a slight uptick from 47% in the first quarter and is also the highest level in at least four years.
Nationwide, the median home value spiked by 10% in the second quarter to $350,000, a new all-time high, after dropping 7% over the prior three quarters.
On the flip side, ATTOM also noted that 2.8% of mortgaged U.S. homes were considered seriously underwater in the second quarter, the lowest point since at least 2019. The second quarter’s level was down from 3% in the prior quarter and 2.9% in the second quarter of 2022.
“The second-quarter market revival bestowed immediate benefits on homeowners around the nation in the form of better profits for sellers and rising equity for those staying put. Equity levels were high even during the recent downturn, and now they are going back up and better than ever,” said Rob Barber, CEO for ATTOM. “It is well worth nothing that the market remains in flux and the recent improvement could easily be temporary. Lots of changing forces are at work affecting whether boom times are really back, especially amid a recent increase in mortgage rates. But with the 2023 peak buying season still underway, it seems that homeowners can reasonably expect their household balance sheets to grow a bit more in the near future.”
This also keeps people in their homes because who wants to pay capital gains taxes? Congressional House Bill HR 1321 “More Homes on the Market Act” would double the capital gains exemption and bring more homes on the market. It is a bipartisan sponsored bill WAY overdue. Write your congressperson and ask them to support this bill.