Despite skyrocketing rates and slowing home price growth, homeowner equity inched out a gain in the third quarter of 2022, according to the latest report from ATTOM data solutions.
- Q-O-Q: The percentage of mortgaged residential properties considered equity-rich was up 0.4 percentage points to 48.5% in the third quarter of 2022.
- Y-O-Y: Equity-rich properties are up nine percentage points from the 39.5% reported in the third quarter of 2021.
NOTE: Equity rich means loan balances secured by property was no more than 50 percent of their estimated market values.
Top States. Vermont took the top spot in Q3 with 75.9% of mortgaged homes considered equity-rich followed by Idaho (65.8%), Arizona (63.4%), Florida(62.8%), and Utah (62.0%).
- Chittenden County, VT took the top spot from Dukes County with 85.2% of mortgage properties considered equity-rich.
Equity For All. Overall, 94.3% of homeowners paying off mortgages had at least some equity built up in the third quarter, this is up from 92.9% a year earlier and 87.7% in the third quarter of 2020.
No Foreclosure Concerns. Only about 227,100 homeowners out of the 58.1 million outstanding mortgages in the U.S. were facing possible foreclosure in the third quarter. Of that four-tenths of one percent about 208,700, or 92 percent, had at least some equity built up in their homes. Meaning 8,400 (1/100 of 1%) homes across the whole country are in danger of being foreclosed.
BOTTOM LINE: With home prices beginning to fall month-over-month its likely this equity rich percentage has probably peaked for this current cycle.