Home equity gains for homeowners cooled off in the third quarter of 2024, according to a recent report from property data and real estate analytics firm ATTOM.
The report indicates 48.3% of mortgaged residential properties were considered equity-rich—meaning the combined estimated amount of loan balances secured by those properties were more than half of their estimated market values. The level was down from its peak of 49.2% in the second quarter of 2024 but higher than a year ago.
“Homeowner equity typically mirrors home price trends, and the third quarter of this year followed that pattern. Equity remained elevated as the value of residential properties has surged consistently over the years,” says ATTOM CEO Rob Barber. “However, it held steady this quarter, reflecting the cooling of earlier sharp price increases. Despite the flat pattern, home equity keeps providing a significant boost to the economy in the form of financial leverage that tens of millions of households can use to finance major purchases or investments.”
On a state-by-state basis, equity was up on an annual basis in 37 states. Additionally, equity was higher in 32 states compared to the third quarter. While 28 states saw home equity levels decline quarter-to-quarter, the decline in the share of equity-rich households was less than two percentage points in the majority of states.
Vermont, West Virginia, Connecticut, New Jersey, and Rhode Island posted the strongest annual increase in the share of equity-rich households. Conversely, Utah, Arizona, Colorado, Washington, and Oregon posted the largest declines on a year-over-year basis. According to ATTOM, high-end markets clustered in the Northeast and West continue to benefit from the best equity-rich rates
Barber says only small movements in equity-rich rates are expected in the coming months as the housing market moves into its annual slow season.
