Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

MortgageReal Estate

Rising home prices boost homeowner equity

Less homes underwater in Q2

The number of homes underwater, where the homeowner owes more than what the home is worth, decreased slightly due to rising home prices, according to the Q2 2016 U.S. Home Equity Report from ATTOM Data Solutions, a source for housing data and the new parent company of RealtyTrac.

In the second-quarter report, 6.6 million properties were seriously underwater, an 11.9% share of total properties at the end of the second quarter. This is down from 12% in the first quarter, and 13.3% last year.

For the report, ATTOM analyzed recorded mortgage and deed of trust data from more than 1,400 counties accounting for 88% of the U.S. population.

“Rising home prices are lifting all home equity boats: bailing out seriously underwater homeowners and enriching homeowners who already have positive equity,” said Daren Blomquist, ATTOM Data Solutions senior vice president.

“Nationwide home prices reached a new all-time high in June on the heels of 52 consecutive months of annual increases,” Blomquist said.

Home prices increased yet again in the second quarter, outpacing wage growth, according to the latest quarterly report by the National Association of Realtors.

The number of seriously underwater properties in the second quarter of 2012, 12.8 million, has decreased by more than 6.1 million, the report stated.

The number of equity-rich properties increased to 22.1% of all properties in the second quarter, up from last quarter’s 22% and last year’s 19.6%.

“While that national trend is consistent in most markets across the country, there are still some local markets and sub-markets that have been largely left behind by the housing recovery and which still have a high percentage of underwater homeowners,” Blomquist said.

Among the 88 metros analyzed for the report with a population of at least 500,000 and sufficient data, the market with the highest share of underwater properties was Cleveland, Ohio, at 27.5%. Las Vegas came in second with a 25.7% share, followed by Akron, Ohio, at 24.9%, Dayton, Ohio, at 24.1% and Toledo, Ohio, at 23.6%.

In response to the existing underwater homes, RealtyTrac created an infographic that shows why so many remain underwater despite rapidly rising home prices. 

The metro with the lowest share of seriously underwater homes is San Jose, California, at 1.7%. San Francisco came in second with a share of 3.7%, followed by Portland, Oregon, at 3.9%, Austin, Texas, at 3.9% and Oxnard-Thousand Oaks-Ventura, California at 4.1%.

Of course, this doesn’t come as much of a surprise as the median single-family home price in San Jose just increased to more than $1 million.

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