A new data report from ATTOM has determined that 46.1% of mortgaged residential properties were equity-rich during the third quarter, down from 47.4% in the second quarter and from 48.3% in the third quarter of 2024. This occurred even though the national median home price rose during the third quarter to a record high of $370,000.
ATTOM defines equity-rich as “the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.” The share of equity-rich homes rose in 19 states compared to the second quarter and in 11 states compared to the third quarter of 2024.
At the other end of the spectrum, about 2.8% of mortgaged residential properties were considered seriously underwater in the third quarter, up slightly from 2.7% in the previous quarter and 2.5% from one year earlier.
“Over the past year, the share of equity-rich homes has eased slightly while the portion of seriously underwater properties has edged up,” said Rob Barber, CEO of ATTOM. “After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing. The modest fluctuations seen over the last few quarters may suggest a housing market that’s finding balance after an extended period of appreciation.”
