Weekly Real Estate News
A new data report from ATTOM has found 46.2% of mortgaged residential properties were considered equity-rich in the first quarter, down from 47.7% in the fourth quarter of 2024. However, the rate is also nearly double what it was in the first quarter of 2020, prior to the pandemic’s impact on the housing market.
The level of equity richness in homes was down in 47 states and the District of Columbia on a quarter-over-quarter basis, but it was also up in 33 states and DC compared to the same time last year.
ATTOM also noted the percent of seriously underwater homes nationwide—those where the combined estimated balance of loans secured by the property is at least 25% more than the property’s estimated market value—was up slightly from 2.5% in the fourth quarter of 2024 to 2.8% in the first quarter of this year. The nationwide proportion of mortgaged homes considered seriously underwater has remained steady between 2% and 3%, and the latest measurement is less than half of what it was during the first quarter of 2020 (6.6%).
“Home equity rates are near their highest points in recent years and the dip we’ve seen early this year in the proportion of equity-rich homes shouldn’t cause too much concern,” said Rob Barber, CEO for ATTOM. “In each of the two previous years, the first quarter marked the lowest point of the year before the proportion of equity-rich homes shot back up in the second quarter.”
