Not surprisingly, home equity surged in the second quarter of 2021, according to the latest ATTOM Data Solutions U.S. Home Equity & Underwater Report… (ATTOM)
- Equity-rich mortgaged residential properties jumped up to 34.4% in the second quarter of 2021.
- Only 31.2% of properties were equity-rich in Q1 2021 and that number was even lower (27.5%) in the second quarter of 2020.
NOTE: The report also found that just 4.1% of mortgaged homes were considered seriously underwater in the second quarter of 2021. This was down from 5.2% in the prior quarter and 6.2% a year ago.
Unfortunately, the states with the highest share of seriously underwater mortgages were in the South and Midwest.
- The areas with most seriously underwater homes weren’t just in the same state, they were in the same city. Cleveland, Ohio had 3 of the top 5 zip codes with the largest share of seriously underwater properties.
On the flip side, the states with the largest share of equity-rich homes were in the West…
- The areas with the most equity-rich homes were concerted around the San Fransico Bay as they held 3 of the top 5 zip codes.
Todd Teta, chief product officer with ATTOM, pointed out that the concern about home values at the start of this pandemic couldn’t have been more wrong.
- “The huge home-price jumps over the past year that helped millions of sellers earn big profits also kicked in big-time during the 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,”
It is important to note that as equity continues to climb we aren’t seeing a surge in cash-out refis. That was the downfall of 2008. People started cashing out at the top and when the market went south they quickly found themselves underwater. Just another reason 2021 is nothing like 2008