real estate housing

A new report on home equity and underwater loans states that about one of every four residential properties in Colorado Springs are “equity-rich,” meaning that these properties had a loan-to-value ratio of 50 percent or lower.

The third-quarter U.S. home equity and underwater report, released Nov. 7 by ATTOM Data Solutions, showed that, of Colorado Springs’ 176,498 outstanding mortgages, 42,827 or 24.3 percent of those property owners had at least 50 percent equity in their homes.

The report also showed that 3,921 or 2.2 percent of mortgages in Colorado Springs were “seriously underwater,” meaning that the property owner owed at least 25 percent more than the estimated market value of the property.

The percentages in El Paso County as a whole were virtually the same, with 24 percent equity-rich and 2.2 percent underwater.

The city and county had lower percentages of both equity-rich and underwater properties than the state as a whole. Of 1.3 million outstanding mortgages statewide, ATTOM’s data showed that 430,951 or 33.1 percent were considered equity-rich, while 34,469 or 2.6 percent were seriously underwater.

Nationwide, 14.4 million residential properties were considered equity-rich, representing 26.7 percent of the 54 million mortgaged homes, and 3.5 million, or 6.5 percent, of mortgaged homes were considered seriously underwater.

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“The latest numbers reveal another profound impact of the extended housing boom, as far more homeowners find themselves on the right side of the balance sheet instead of the wrong side,” said . said Todd Teta, chief product officer with ATTOM Data Solutions. “This is a complete turnabout from what was happening when the housing market crashed during the Great Recession. 

Teta said notable equity gaps exist between regions and market segments.

“But as home values keep climbing, homeowners are seeing their equity building more and more, while those with properties still worth a lot less than their mortgages represent just a small segment of the market,” he said.

The top 10 states with the highest share of equity-rich properties in the third quarter were all in the Northeast and West regions, led by California (40.8 percent), Hawaii (39.2 percent), Vermont (39.0 percent), New York (35.7 percent) and Washington (35.6 percent).

Among 107 metropolitan statistical areas with a population greater than 500,000 analyzed in the report, those with the highest shares of equity-rich properties were San Jose, Cal. (62.7 percent), San Francisco (51.1 percent), Los Angeles (46.6 percent), Santa Rosa, Cal. (46.5 percent) and Honolulu, HI (39.4 percent). The leader in the Northeast region was Boston (35.4 percent), while Dallas, Tex. led the South (38.2 percent) and Grand Rapids, Mich. led in the Midwest (27.8 percent).

The states with the highest shares of mortgages that were seriously underwater in the third quarter were all in the South and Midwest, led by Louisiana (16.5 percent), Mississippi (15.8 percent), West Virginia (14.2 percent), Iowa (14.0 percent) and Arkansas (13.1 percent).

ATTOM Data Solutions curates property tax, deed, mortgage, foreclosure, environmental risk, natural hazard and neighborhood data for more than 155 million U.S. residential and commercial properties from multiple sources to produce its reports on the U.S. housing market. 

View the full report here: