IRVINE, Calif., Aug. 17, 2017 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q2 2017 U.S. Home Equity & Underwater Report, which shows that at the end of the second quarter of 2017 there were more than 14 million (14,038,372) U.S. properties that were equity rich — where the combined loan amount secured by the property was 50 percent or less of the estimated market value of the property — up by nearly 320,000 properties from the previous quarter and up by more than 1.6 million properties from a year ago.
The 14 million equity rich U.S. properties represented 24.6 percent of all U.S. properties with a mortgage, up from 24.3 percent in the previous quarter and up from 22.1 percent in Q2 2016.
The report is based on publicly recorded mortgage and deed of trust data collected and licensed by ATTOM Data Solutions nationwide along with an industry standard automated valuation model (AVM) updated monthly in the ATTOM Data Warehouse of more than 150 million U.S. properties (see full methodology below).
The report also shows that more than 5.4 million (5,433,684) U.S. properties were still seriously underwater — where the combined loan amount secured by the property was at least 25 percent higher than the property's estimated market value — at the end of Q2 2017, down by more than 64,000 properties from the previous quarter and down by more than 1.2 million from a year ago.
The 5.4 million seriously underwater properties represented 9.5 percent of all properties with a mortgage, down from 9.7 percent in the previous quarter and down from 11.9 percent in Q2 2016.
"An increasing number of U.S. homeowners are amassing impressive stockpiles of home equity wealth, enjoying the benefits of rapidly rising home prices while staying conservative when it comes to cashing out on their equity — homeowners are staying in their homes nearly twice as long before selling as they were prior to the Great Recession, and the volume of home equity lines of credit are running about one-third of the level they were at during the last housing boom," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "However, this home equity wealth is unevenly distributed across different geographies, value ranges, occupancy statuses and lengths of ownership, with a disproportionately high equity rich share among high-end properties, investor-owned properties and properties owned for more than 20 years."
Highest share of equity rich in San Jose, San Francisco, LA, Honolulu, Portland
States with the highest share of equity rich properties at the end of Q2 2017 were Hawaii (38.3 percent); California (36.6 percent) and New York (34.2 percent).
Among 91 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of equity rich properties were San Jose, California (52.0 percent); San Francisco, California (47.0 percent); Los Angeles, California (40.0 percent); Honolulu, Hawaii (40.0 percent); and Portland, Oregon (35.0 percent).
Highest share of seriously underwater in Cleveland, Baton Rouge, Akron, Las Vegas, Toledo
States with the highest share of seriously underwater properties as of the end of Q2 2017 were Nevada (17.4 percent), Louisiana (17.1 percent) and Illinois (16.8 percent).
"Ohio housing has been increasing in value quarter over quarter, and the report shows the number of homes with negative equity has decreased substantially in 2017, with a decrease of nearly 100,000 properties statewide compared to a year ago," said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio. "A shortage of inventory and increase in overall cost for new construction has caused the value of existing homes to increase at an accelerated rate in 2017, lowering the overall number of homes underwater."
Among 91 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of seriously underwater properties were Cleveland, Ohio (21.8 percent); Baton Rouge, Louisiana (21.0 percent); Akron, Ohio (20.5 percent); Las Vegas, Nevada (20.2 percent); and Toledo, Ohio (20.2 percent).
About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties.
Jennifer von Pohlmann
949.502.8300, ext. 139
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SOURCE ATTOM Data Solutions