Did you know? A recent study called the “U.S. Home Equity & Underwater Report” released by ATTOM indicates that 34.4% of mortgaged residential properties in the U.S. were considered equity-rich in Q2 2021. What this means is that the combined estimated amount of loans secured by those properties was no more than 50% of their estimated market value. For perspective, mortgaged homes that were equity-rich in Q2 2021 rose to 34.4% from a figure of 31.2% in Q1 2021. Year-over-year, this figure increased from 27.5% in Q2 2020.
As for the percentage of mortgaged homes that were seriously underwater in Q2 2021, only 4.1% met this criteria. This equates to 1 in 24 mortgaged homes. The prior quarter of Q1 2021 was actually higher at 5.2%. As for Q2 2020, the number of underwater mortgaged homes was approximately 1 in 16, or 6.2%. Overall, all states experienced a rise in equity-rich homes, which is a positive sign for the economy.
- West & Northeast: These regions were home to 9 of the top 10 states with the biggest gains in the share of equity-rich homes since last quarter.
- South & West: These regions were home to 7 of the top 10 states with the biggest declines in the percentage of mortgaged homes considered seriously underwater since the last quarter.
It is no secret that the rapid rise in home prices over the past 18 months has resulted in many more homeowners becoming equity-rich. In particularly, the rise in home prices during Q2 2021 was greater than at any time seen over the past 2 years. At the start of the pandemic, the future of housing values was a huge unknown. As of now, we are expecting prices to stabilize as inventories continue to improve some. The future of this market will also hinge on our recovery from the pandemic. As for South Florida, it is projected to continue being one of the top destinations in the country for relocating Americans. This should result in a persistently strong demand for housing.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!