California, Florida Reaping Rewards of U.S. Home Equity Surge

  • Share of "seriously underwater" U.S. homes falls to 9.3%
  • One quarter of properties with a mortgage are "equity rich"

The steady increase in U.S. home valuations over the last few years cut the share of "seriously underwater" properties, where the mortgage is 125% or higher of the value of the home, to 9.3 percent last quarter. And more than one fourth of homes with a mortgage have a loan-to-value ratio of 50 percent or less, according to ATTOM Data Solutions.

Equity in real estate has more than doubled to record levels since the last recession...

and valuations are expected to continue to rise.

Higher Home Price Expectations

Consumers’ net expectations that home prices will increase over the next year spike

Source: Fannie Mae Home Purchase Sentiment Index

ATTOM’s figures show 18 zip codes, almost exclusively in California, where more than three quarters of the homes are "equity rich" -- the value of the property is more than twice as large as the outstanding mortgage balance.

Zip Code
State
City
Percent Equity Rich
Total with Loans
95130CaliforniaSan Jose81.4%2,991
94087CaliforniaSunnyvale80.6%11,540
94040CaliforniaMountain View79.5%5,577
11220New YorkBrooklyn78.8%4,059
94043CaliforniaMountain View77.9%5,685
94122CaliforniaSan Francisco77.6%9,904
94086CaliforniaSunnyvale77.6%6,348
94306CaliforniaPalo Alto77.4%5,658
94085CaliforniaSunnyvale77.3%3,253
94303CaliforniaPalo Alto76.7%7,951
95129CaliforniaSan Jose75.9%8,380
94024CaliforniaLos Altos75.7%6,350
94116CaliforniaSan Francisco75.6%9,878
94063CaliforniaRedwood City75.5%3,099
95051CaliforniaSanta Clara75.5%10,599
95014CaliforniaCupertino75.2%12,637
95117CaliforniaSan Jose74.3%3,723

Even the hard-hit Floridian real estate market has seen a rapid decline in the number of "underwater properties" since the recession ended...

Recovery

Fewer Florida homes worth less than 125% of the outstanding mortgage

Source: ATTOM Data Solutions

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