According to ATTOM’s just released Q3 2023 U.S. Home Equity & Underwater Report, the portion of mortgages that were equity-rich went down in 29 of the 50 U.S. states from Q2 to Q3 2023, commonly by one to four percentage points.
The latest home equity and underwater analysis compiled by ATTOM found that the biggest declines came in the South region, led by South Carolina (portion of mortgages homes considered equity-rich decreased from 50 percent in Q2 2023 to 43.7 percent in Q3 2023), Florida (down from 60.4 percent to 54.4 percent), Kentucky (down from 42.1 percent to 37.1 percent), California (down from 63.3 percent to 58.5 percent) and Oklahoma (down from 36.5 percent to 32.5 percent).
ATTOM’s third-quarter home equity and underwater report noted that at the other end of the scale, equity-rich levels rose in 21 states from Q2 to Q3 2023, with the largest improvements concentrated in the Northeast region. According to the report the biggest increases were in South Dakota (up from 46.4 percent to 49.9 percent), Maine (up from 56 percent to 59.3 percent), Connecticut (up from 38.6 percent to 41.5 percent), New Jersey (up from 43 percent to 45.9 percent) and New Hampshire (up from 56.6 percent to 59.4 percent).
The report also noted that the 10 states with the highest levels of equity-rich mortgaged properties around the U.S. in Q3 2023 were in the Northeast and West regions. According to the report, those with the largest portions were Vermont (79.8 percent of mortgaged homes were equity-rich), New Hampshire (59.4 percent), Maine (59.3 percent), Montana (59.1 percent) and California (58.5 percent).
ATTOM’s latest report mentioned that among the 107 U.S. metro areas with a population of at least 500,000, the West and South again dominated the list of places with the highest portion of mortgaged properties that were equity-rich.
According to the report, all but three of the top 25 metros were in those regions in Q3 of 2023, led by San Jose, CA (75 percent equity-rich); San Diego, CA (66.4 percent); Los Angeles, CA (66.4 percent); San Francisco, CA (64.1 percent) and Portland, ME (63.5 percent). Meanwhile, the leader in the South region again was Sarasota-Bradenton, FL (61.5 percent) while the top metro in the Midwest continued to be Grand Rapids, MI (54.3 percent).
In this post, we dive deep into the data behind our third-quarter home equity and underwater report to uncover those top zip codes with the highest portions of equity-rich properties in Q3 2023. Those zips include: 11963 – Sag Harbor, NY (87.0 percent); 83340 – Ketchum, ID (86.5 percent); 95148 – San Jose, CA (86.1 percent); 95062 – Santa Cruz, CA (84.7 percent); 92011 – Carlsbad, CA (84.7 percent); 92657 – Newport Coast, CA (84.6 percent); 81435 – Telluride, CO (84.5 percent); 76115 – Fort Worth, TX (84.4 percent); 95130 – San Jose, CA (84.4 percent); and 95121 – San Jose, CA (84.0 percent).
Also according to the ATTOM Q3 2023 home equity and underwater report, 9 of the 10 states with the lowest percentages of equity-rich properties were in the Midwest and South, with the smallest portions in Louisiana (19.7 percent of mortgaged homes were equity-rich), Illinois (29.8 percent), Alaska (29.8 percent), West Virginia (30.5 percent) and North Dakota (30.7 percent).
The report noted that the 10 metro areas with the lowest percentages of equity-rich properties in Q3 2023 were in the Midwest and South, led by Baton Rouge, LA (15.1 percent of mortgage homes were equity-rich); New Orleans, LA (26.4 percent); Little Rock, AR (26.6 percent); Virginia Beach, VA (28.1 percent) and Jackson, MS (29.5 percent).
Want to learn more about home equity and underwater trends in your area? Contact us to find out how!