September 26, 2021

MP Now News

Mortgage News

Local equity rich properties increase, up-side down mortgages decline

The hot housing market makes it a great time to be a homeowner in the Tri-Cities. The number of equity-rich pledged properties has increased and the number of perverted pledged properties has decreased.

“The persistent price spikes we are seeing are helping to reduce the number of seriously underwater properties and increase the level of equity-rich real estate,” said Todd Teta, chief product officer for ATTOM Data Solutions, in his company’s first quarter Home Equity and Underwater Report. “However, that may change once the foreclosure moratorium is lifted, and we are seeing it, also because it could limit stock gains and draw people underwater. For the time being, however, the stock image remains one of many signs that the long boom in the US real estate market is continuing. “

The number of equity-rich properties rose in the eight districts included in the analysis by 4,914, which corresponds to 26.9% of the properties pledged. The total was 24,548. An equity rich property is one where the total estimated amount of loans on the property is 50% or less of the estimated market value.

On the other side of the ledger, the number of serious underwater properties decreased by 1,625 from a year earlier. The total for the first quarter was 7,236, or 7.9% of the local property mortgaged. A serious underwater property is a property with a 125% loan-to-value ratio, which means the owner owes at least 25% more than the property’s appraised value.

The improvement at both ends of the stock scale has been consistent across the country despite the aftermath of the pandemic. Profits rose as average house prices rose 16% year-over-year in the first quarter of 2021 and rose at least 10% in most countries. The Northeast Tennessee Association of Realtors (NETAR) home sales report shows the local average price in the counties it monitors rose 14.9% in the first quarter.

A separate report also notes the continued rise in mortgage default rates. According to CoreLogic’s latest credit performance report, the Johnson City metropolitan area crime rate for owners who are 30 days or more in arrears is 5%, down from 3% last year. The Johnson City subway area includes Carter, Washington, and Unicoi counties.

The crime rate in the Kingsport-Bristol area is 5.7% compared to 4.3% in the previous year. Hawkins and Washington counties in NE Tenn belonged to this subway area. And Scott and Washington in SW Va.

ATTOM’s report includes eight local counties with the 15 postcodes in those counties.

The county with the highest share of equity real estate market was Sullivan – 31%. The counties with the lowest percentage were Carter, Greene, in NE Tenn. And Washington Co. in SW Va. Each had a total of 23%.

The county with the highest proportion of underwater properties was Greene – 15%. The lowest was Sullivan and Washington Co. Tenn. With 5% each.

The US equity allocation in the first quarter was 31.9%. In Tennessee it was 29.4%. None of the local counties had a rate higher than the US rate.

The national underwater rate was 4.7%. In Tennessee it was 5.5%. All counties had a higher rate.

The local zip code with the highest proportion of equity-rich real estate was 37617 in Blountville and 37553 in Kingsport. Both had a market share of 32%. The zip code with the lowest percentage was 37745 in Greeneville – 22%.

The local zip code with the highest proportion of underwater properties was 37743 and 27745 in Greeneville – 14%. The zip code with the lowest proportion of underwater mortgages was Kingsport 37553 and Jonesborough 37659. Both had a market share of 3%.


Categories: PROPERTY