The Q3 2016 U.S. Home Equity and Underwater report from ATTOM Data Solutions reported that more homeowners have become equity rich because they’re staying in their homes longer. Equity rich is defined as when a homeowner has a loan-to-value ratio of at least 50%.
According to the report, 23.4% of all homeowners with a mortgage are now considered equity rich, an increase of 2.6 million from last year to 13 million in the third quarter.
Currently, in the third quarter of 2016, only 10.8% of all homeowners with a mortgage are seriously underwater.
This number of homeowners seriously underwater decreased from 2015 by 854,000 homeowners to about 6 million in 2016.
For the second-quarter 2016 report, just 6.6 million properties were seriously underwater, which represented just 11.9% of total properties.
The report estimates that close to one in every five U.S. homeowners with a mortgage is now equity rich.
FAST FACTS
+ Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016
+ Homeowners who sold in the third quarter had owned their home an average of 7.94 years
+ This is a new high and substantially higher than the average homeownership tenure of 4.26 years pre-recession
+ As homeowners stay in their homes longer before moving up, they are amassing more home equity wealth
Areas with the highest share of equity rich homeowners (with a population of 500,000 or more):
San Jose with 55.7%
Honolulu with 39.3%
Los Angeles with 38.2%
Pittsburgh with 34.5%
Areas with the lowest share of homeowners still seriously underwater (with a population of 500,000 or more):
Las Vegas with 25%
Akron, Ohio with 24.2%
Cleveland, Ohio with 22.8%
Toledo, Ohio with 21.7%
Dayton, Ohio with 20.2%
Detroit with 20%
Lakeland-Winter Haven, Florida with 20%
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.