Seriously Underwater U.S. Properties Increase From A Year Ago

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Share of Equity Rich Properties Decrease from a Year Ago; Share of Seriously Underwater Properties Represent 9.1 Percent of U.S. Properties; Report Includes Home Equity Breakdown by Zip Code with Heat Maps

IRVINE, Calif. — May 9, 2019 — ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q1 2019 U.S. Home Equity & Underwater Report, which shows that at the end of the first quarter of 2019, more than 5.2 million (5,223,524) U.S. properties were seriously underwater (where the combined balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value), up by more than 17,000 properties from a year ago.

The 5.2 million seriously underwater properties at the end of Q1 2019 represented 9.1 percent of all U.S. properties with a mortgage, up from 8.8 percent in the previous quarter but down from 9.5 percent in Q1 2018.

“With home prices increasing at a slower pace in 2018, than in previous years, the potential for people to climb out from mortgages that are underwater or advance into equity-rich territory, tends to be reduced,” said Todd Teta, chief product officer at ATTOM Data Solutions. “However, only one in 11 mortgages are seriously underwater today, compared to nearly one in three during the depths of the recession. Although, if the latest trend continues, it will raise another clear signal of a market slowdown, which will be good for buyers, but not so good for sellers. But if the pattern of the past few years takes hold – with levels of underwater and equity rich mortgages turning around – it will mean the market remains strong for sellers, with fewer needing to get out from under financial distress.”

Historical U.S. Underwater & Equity Rich Trends

Qtr-YrU.S. Properties Seriously Underwater% Seriously UnderwaterU.S. Properties Equity Rich% Equity Rich
Q1 201212,533,15527.8%  
Q2 201212,824,27928.6%  
Q3 201212,472,26227.6%  
Q1 201310,894,74325.8%  
Q2 201311,336,03325.7%  
Q3 201310,714,92423.2%  
Q4 20139,274,12618.8%9,097,32518.5%
Q1 20149,065,74117.5%9,935,93919.1%
Q2 20149,074,44917.2%9,945,64618.9%
Q3 20148,135,64815.0%10,812,96820.1%
Q4 20147,052,57012.7%11,249,64620.3%
Q1 20157,341,92213.2%11,053,05519.8%
Q2 20157,443,58013.3%10,963,04119.6%
Q3 20156,917,67312.7%10,476,25919.2%
Q4 20156,436,38111.5%12,621,27422.5%
Q1 20166,703,85712.0%12,335,65122.0%
Q2 20166,666,62211.9%12,383,34522.1%
Q3 20166,063,32610.8%13,125,36723.4%
Q4 20165,408,3239.6%13,877,31524.6%
Q1 20175,497,7719.7%13,718,47324.3%
Q2 20175,433,6849.5%14,038,372    24.6%
Q3 2017 4,628,4088.7%14,030,39426.4%
Q4 20175,032,1859.3%13,731,76725.4%
Q1 20185,206,4469.5%13,841,08225.3%
Q2 20185,181,4679.3%13,907,75824.9%
Q3 20184,940,7248.8%14,464,37925.7%
Q4 20185,001,4828.8%14,566,36325.6%
Q1 20195,223,5249.1%14,401,55525.1%

Highest seriously underwater share in Louisiana, Mississippi, Arkansas, West Virginia

States with the highest share of seriously underwater properties were Louisiana (20.7 percent); Mississippi (17.1 percent); Arkansas (16.3 percent); West Virginia (16.2 percent); and Illinois (16.2 percent).

Among 99 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (21.3 percent); Scranton, Pennsylvania (20.0 percent); Youngstown, Ohio (19.2 percent); Toledo, Ohio (19.2 percent); and New Orleans, Louisiana (17.8 percent).

32 zip codes where more than half of all properties are seriously underwater

Among 7,639 U.S. zip codes with at least 2,500 properties with mortgages, there were 32 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Milwaukee, Trenton, Chicago, Saint Louis, and Cleveland metropolitan statistical areas.

The top five zip codes with the highest share of seriously underwater properties were 53206 in Milwaukee, Wisconsin (70.5 percent seriously underwater); 08611 in Trenton, New Jersey (68.9 percent); 69361 in Scottsbluff, Nebraska (63.4 percent); 60426 in Harvey, Illinois (63.1 percent); and 61104 in Rockford, Illinois (62.8 percent).

Q1 2019 Underwater Properties by ZIP

Highest equity rich share in California, Hawaii, New York, Washington, Vermont

States with the highest share of equity rich properties were California (43.0 percent); Hawaii (38.1 percent); New York (34.2 percent); Washington (33.2 percent); and Vermont (32.8 percent).

Among 99 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose, California (68.3 percent); San Francisco, California (58.4 percent); Los Angeles, California (48.1 percent); Santa Rosa, California (47.6 percent); and San Diego, California (39.3 percent).

408 zip codes where more than half of all properties are equity rich

Among 7,639 U.S. zip codes with at least 2,500 properties with mortgages, there were 408 zip codes where more than half of all properties with a mortgage were equity rich.

The top five zip codes with the highest share of equity rich properties were all located in the San Jose and San Francisco markets in California: 94040 in Mountain View (82.3 percent equity rich); 94116 in San Francisco (81.7 percent); 94087 in Sunnyvale (81.6 percent); 94085 in Sunnyvale (81.1 percent); and 94122 in San Francisco (81.0 percent).

Q1 2019 Equity Rich Properties by ZIP

Report methodology

The ATTOM Data Solutions U.S. Home Equity & Underwater report provides counts of residential properties based on several categories of equity — or loan to value (LTV) — at the state, metro, county and zip code level, along with the percentage of total residential properties with a mortgage that each equity category represents. The equity/LTV is calculated based on record-level loan model estimating position and balance of loans secured by a property and a record-level automated valuation model (AVM) derived from publicly recorded mortgage and deed of trust data collected and licensed by ATTOM Data Solutions nationwide for more than 155 million U.S. properties.

Definitions

Seriously underwater: Loan to value ratio of 125 percent or above, meaning the property owner owed at least 25 percent more than the estimated market value of the property.

Equity rich: Loan to value ratio of 50 percent or lower, meaning the property owner had at least 50 percent equity.  

About ATTOM Data Solutions

ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).

Media Contact:

Christine Stricker

949.748.8428

christine.stricker@attomdata.com

Data and Report Licensing:

949.502.8313

datareports@attomdata.com

Please contact us if you have questions about the underlying data referenced in this article, or would like to have access to that data in the form of custom reports, API, Bulk File or DaaS.

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