Report shows 48.1% of mortgaged residential properties were considered equity-rich in the second quarter, up from 34.4% a year ago.

ATTOM released its second-quarter U.S. Home Equity & Underwater Report, which showed 48.1 percent of mortgaged residential properties in the United States were considered equity-rich in the second quarter, an increase from 44.9 percent in the first quarter and from 34.4 percent a year ago. The latest increase, to virtually half of all mortgage payers, marked the ninth straight quarterly rise in the portion of homes in equity-rich territory. The report also said just 2.9 percent of mortgaged homes, or one in 34, were considered seriously underwater in the second quarter, with a combined estimated balance of loans secured by the property of at least 25 percent more than the property’s estimated market value. That was down from 3.2 percent of all U.S. homes with a mortgage in the prior quarter and 4.1 percent, or one 24 properties, a year earlier. “After 124 consecutive months of home price increases, it’s no surprise that the percentage of equity rich homes is the highest we’ve ever seen, and that the percentage of seriously underwater loans is the lowest,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While home price appreciation appears to be slowing down due to higher interest rates on mortgage loans, it seems likely that homeowners will continue to build on the record amount of equity they have for the rest of 2022.” The equity scenario continued improving in the second quarter for homeowners around the U.S., mainly because home values kept soaring. After a flat first quarter, the median single-family home price shot up another 9 percent quarterly and 15 percent annually during the Spring of this year to a record $346,000. In addition, down payments for recent buyers have grown from about 5 percent to 7 percent over the past couple of years, resulting in new owners starting off with more equity. 

Source: ATTOM