Like the prior two years, home equity continued to grow in the first quarter of 2022, according to ATTOM’s first-quarter 2022 U.S. Home Equity & Underwater Report…(ATTOM)
- Q-O-Q: Mortgaged residential properties in the United States that are considered equity-rich hit 44.9% in Q1, this is up three percentage points from Q4 of 2021.
- Y-O-Y: Properties considered equity-rich were up 13 percentage points from Q1 2021 when it was 31.9%.
Rick Sharga, executive vice president of market intelligence for ATTOM, said homeowners continue to benefit from rising prices…
- “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008. But these higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market.”
As equity rises, properties that are considered underwater have drastically decreased from the same time last year…
- Q-O-Q: Mortgaged homes considered seriously underwater increased slightly to 3.2%, this up from the 3.1% reported in Q4 of 2021.
- Y-O-Y: Mortgaged properties considered seriously underwater have dropped drastically from the 4.7% reported in Q1 of 2021.
The West still has the largest share of equity-rich properties in the country in Q1 with Idaho leading the way with 68.8% of properties considered equity rich in the state.
- Vermont was a close second at 68% followed by Utah (63.6%) and Washington and Arizona both at 60.9%.
- Looking at metros, San Jose, Ca lead them all with 74.4% of properties considered equity rich followed by Austin, TX (73.8%), Boise, ID (70%), and San Francisco (68.1%).
NOTE: The top county was Dukes County in Massachusetts (aka Martha’s Vineyard) where 81.1% of properties are equity-rich.
Anyone who is actually paying attention knows the housing market has never been sturdier. While it is true that entry to housing is reaching all-time highs, if you currently own you are probably sitting pretty. Just to emphasize this point, this report finds even those in foreclosure are doing better than normal. First off, only about 201,000 homeowners were facing foreclosure in Q1 which equates to 0.3% of the 58.1 million outstanding mortgages. Making matters even better, of those 201,000 90%, or 180,000, have at least some equity built up in their home. Sorry crash bros. Maybe next year…