Homeowner equity soared across the US during Q2 2021. Of the 34.3 mortgages properties in the US, one in three was considered equity rich.
1 in 3 of 34.3% of Mortgaged Residential Properties Considered Equity Rich
According to ATTOM Data Solutions recently released Q2 2021Home Equity and Underwater Report, one in three of the country’s mortgaged residential properties was considered to be equity rich. this percentage of 34.4% was up from 31.3% in Q1 2021 and 27.3% during Q2 2020.
Equity increases during Q2 were in lock-step with increasing median home prices nationwide. Median home prices rose +11% q/q and +22% y/y. Median sales jumped at least +15% y/y in a majority of metro area markets nationwide.
“The huge home price jumps over the past year that have helped millions of sellers earn big profits also kicked in big-time during th second quarter for other owners who saw their typical equity improve more than at any time in the last two years.Instead of the virus pandemic harming homeowners, it’s helped create conditions that have boosted the balance sheets of households all across the country,” said Todd Teta, chief product officer with ATTOM.
Western & Northeastern States Saw Big Equity Improvements
Nine of the ten states with the largest gains of equity-rich homes during Q2 2021 were in the West and Northeast. Take a look:
- Arizona – from 16.3% in Q1 2021 to 39.7% in Q2 2021
- Massachusetts – from 25.3% to 41.7%
- New Hampshire – from 20.4% to 36.1%
- Rhode Island – from 21% to 36.4%
- Delaware – from 10.3% to 25.2%
States with Least Share of Equity Improvements
- Maryland – from 23.3% to 23.2%
- West Virginia – flat at 19.8% for both Q1 and Q2 2021
- Nebraska – from 27% to 27.1%
- Montana – from 40.4% to 40.8%
Record-Lows for Seriously Underwater Homes
During Q2 2021, according to ATTOM, just 4.1% of mortgaged homes, one in 24, were considered to be seriously underwater. This 4.1%, one 16 properties, was down from 5.2% in Q1 2021.
Southern & Western States Show Biggest Declines in Underwater Properties
Of the 10 states showing the biggest declines in underwater properties, 7 of these 10 states were in the South and West.
Take a look:
- Tennessee – from 10.1% to 4.4%
- Alabama – from 12.1% to 6.6%
- Delaware – from 9.9% to 4.6%
- Nebraska – from 8.6% to 5%
States with the Highest & Lowest Levels of Equity Rich Properties in Q2 2021
Again, the Western region of the country dominated in having the highest levels of equity-rich residential properties.
- Idaho – 54.2%
- California – 53.8%
- Vrmont – 53.3%
- Washington – 49.4%
- Utah – 45.5%
States with the lowest percentage of equity-rich properties are in th South and Midwest.
- Louisiana – 17.1%
- Illinois – 18.4%
- Oklahoma – 19.6%
- West Virginia – 19.8%
- Alabama – 21.2%
9 of 10 Metros with Highest Shares of Equity-Rich Mortgaged Properties in Q2 2021
- San Jose CA – 69.4%
- San Francisco CA – 64.9%
- Los Angeles CA – 57.9%
- Boise ID – 57.4%
- San Diego CA – 54.3%
- Boston MA led the Northeast region at 43.9%
- Austin TX led the Southern region at 52.3%
- Grand Rapids MI led the Midwest region at 37.2%
Thanks to ATTOM Data Solutions.