RealtorMag
The number of equity-rich properties in the U.S. may have reached a tipping point, according to ATTOM Data Solutions’ First Quarter 2018 U.S. Home Equity & Underwater Report. Equity-rich properties in the U.S. in the second quarter are down from their peak in the second quarter of 2017. ATTOM Data Solutions defines “equity rich” as borrowers who have at least 50 percent equity in their property.
“We’ve reached a tipping point in this housing boom where enough homeowners have regained both sufficient equity and sufficient confidence to tap into their home equity—resulting in a noticeably slower decline in seriously underwater properties and slower growth in equity rich properties,” explains Daren Blomquist, senior vice president at ATTOM Data Solutions. “This tapping of equity could take the form of a cash-out refinance, home equity loan or simply a home sale. We saw the biggest quarterly drop in average homeownership tenure for homeowners who sold in the first quarter since Q4 2008, evidence that more homeowners are reaching that equity-tapping tipping point more quickly and deciding to sell.”
