Washington & Oregon among the highest share of equity-rich properties in the U.S.
According to a report from ATTOM Data Solutions This Week in Real Estate Washington and Oregon rank 4th and 5th, respectively, with the highest share of equity-rich properties in the country. Below are a few highlights from the first week of February that influence our business:
Equity-Rich U.S. Properties Increase to New High in 2018. On Thursday ATTOM Data Solutions released its 2018 U.S. Home Equity & Underwater Report, which shows that in the fourth quarter of 2018, over 14.5 million U.S. properties were equity-rich – where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value – up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013.
The 14.5 million equity-rich properties in Q4 2018 represented 25.6 percent of all properties with a mortgage, down slightly from 25.7 percent in the previous quarter but up from 25.4 percent in Q4 2017. “This report helps to showcase a story of the West coast markets having the highest share of equity-rich homeowners versus the South and Midwest markets, who continue to have stubbornly high rates of seriously underwater homeowners.” States with the highest share of equity-rich properties were California (43.6 percent); Hawaii (39.3 percent); New York (34.2 percent); Washington (34.2 percent); and Oregon (32.9 percent).
Number of Homes Selling Above List Price Drastically Declines. In December, only 19.4% of homes were sold above list price, marking a three-year low. Furthermore, December was the seventh consecutive month to experience a rate drop. Across the country, the share of homes that sold above list price has been moving between 15% and 25% since 2012.
Permit Growth Flat in November. Over the first eleven months of 2018, the total number of single-family permits issued year-to-date (YTD) nationwide reached 799,679. On a year-over-year basis, this is a 5.1% increase over the November 2017 level of 761,229. Year-to-date ending in November, single-family permits grew in the Southern and the Western regions of the country, while the Midwest and Northeast declined by 2.6% and 3.0% respectively, compared to the same time period in 2017. The Western region had the highest growth in single-family (9.8%) while the South recorded the highest multifamily permits growth (13.2%) during the last 12 months.