According to ATTOM’s just released Q1 2023 U.S. Home Equity & Underwater Report, 47.2 percent of mortgaged residential properties in the U.S. were considered equity-rich in the first quarter.
ATTOM’s latest home equity and underwater analysis found that portion of mortgaged homes that was equity-rich in Q1 2023 decreased slightly from 48 percent in Q4 2022, and marked the second straight quarterly decline following 10 consecutive gains. The Q1 2023 analysis also noted that the portion of equity-rich mortgage-payers went down from Q4 2022 to Q1 2023 in 32 states around the U.S.
Also according to the report, the portion of equity-rich mortgages continued to decrease in a majority of states around the U.S. from Q4 2022 to Q1 2023, commonly by less than two percentage points. The report stated the biggest drops again came in the West, which followed a pattern that began late last year.
The report noted that the first-quarter declines were led by Arizona (portion of mortgages homes considered equity-rich decreased from 59.9 percent in the fourth quarter of 2022 to 56.4 percent in the first quarter of 2023), Nevada (down from 52.3 percent to 49 percent), Idaho (down from 61.6 percent to 58.5 percent), Utah (down from 60.3 percent to 58.1 percent) and Washington (down from 58.5 percent to 56.5 percent).
ATTOM’s Q1 home equity and underwater report also noted that despite seeing some of the largest decreases in equity-rich percentages, the West still had highest levels of such properties around the U.S. in Q1 2023, with seven of the top 10 states. According to the report, those states with the highest portions were Vermont (75.9 percent of mortgaged homes were equity-rich), Florida (61 percent), California (59.7 percent), Idaho (58.5 percent) and Montana (58.4 percent).
Also as mentioned in the report, among 8,743 U.S. zip codes that had at least 2,000 residential properties with mortgages in Q1 2023, there were 43 percent where at least half the mortgaged properties were equity-rich.
The analysis reported that the top 50 were all in California, Florida, Massachusetts, New York and Texas, with four of the top 10 in Collier County (Naples), FL. The top 50 zip codes were led by 02539 in Edgartown, MA (86.9 percent of mortgaged properties were equity-rich); 34102 in Naples, FL (86.3 percent); 11963 in Sag Harbor, NY (85.1 percent); 33477 in Jupiter, FL (84.8 percent) and 34108 in Naples, FL (84.8 percent).
In this post, we dive deep into the data behind our Q1 2023 home equity and underwater report to uncover the top zip codes with the greatest quarterly declines in Q1 2023. Those zips included: 76247 – Justin, Texas (portion of mortgages homes considered equity-rich decreased from 47.2 percent in Q4 2022 to 32.2 percent in Q1 2023); 33957 – Sanibel, Florida (down from 76.5 percent to 61.8 percent); 29550 – Hartsville, South Carolina (down from 36.5 percent to 22.8 percent); 42276 – Russellville, Kentucky (down from 35.5 percent to 22.1 percent); 33545 – Zephyrhills, Florida (down from 58.9 percent to 45.7 percent); 04444 – Hampden, Maine (down from 51.8 percent to 38.9 percent); 76227 – Aubrey, Texas (down from 41.9 percent to 29.6 percent); 78724 – Austin, Texas (down from 70.5 percent to 58.7 percent); 75965 – Nacogdoches, Texas (down from 51.4 to 39.6 percent); 29532 – Darlington, South Carolina (down from 32.2 percent to 20.6 percent).
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