According to Attom Data Solutions 17.8 million residential properties were considered equity-rich in Q4 of 2020.
To put this into perspective, that is one in three of the 59 million mortgaged homes nationwide now considered equity-rich. Equity-rich means that the combined estimated amount of loans secured by these properties was 50% or less of their estimated market value. A continuous rise up from 28.3% the previous quarter and 26.7% the year before.
Meanwhile, the number of mortgaged homes considered “underwater”, (homes with combined estimated loan balances of at least 25% more than the property’s estimated market value) declined from 6% to 5.4% in Q4 of 2020.
With more homeowners than ever spending a majority of their time at home, home improvement activity has skyrocketed. In fact, the US is seeing the highest levels of home improvement spending in history. With many homeowners sitting on a growing reserve of personal wealth, equity rich properties now outnumber those underwater by six-to-one, making this the perfect time for a Loan Officer to reach out to this pool of qualified homeowners. With irresistible low rates available, being contacted with a cash-out offer that could assist with home improvements or deferred maintenance is highly effective.
Equity rich properties now outnumber those underwater by six-to-one, making this the perfect time for a Loan Officer to reach out to this pool of qualified homeowners