Many D.C.-Area Homeowners Are Equity Rich
Many D.C.-area homeowners have a good amount of equity in their homes, WTOP reported. According to research from Attom Data Solutions, 22 percent of DC-area homeowners are “equity rich,” meaning that the value of their home would offer at least 50 percent more than their current balance on their mortgages should they choose to sell.
That 22 percent accounts for around 296,000 mortgaged homeowners in the area, WTOP noted.
A small percentage (6.7 percent) of homeowners, however, as still considered “underwater,” meaning they owe the bank at least 25 percent more in an existing mortgage than they could sell their home for, WTOP wrote of Attom’s data. Most of those in that situation purchased a home before the housing market crash.
“Accelerating home price appreciation this year is increasing the velocity at which seriously underwater homeowners are recovering home equity lost during the Great Recession,” said Daren Blomquist, senior vice president of Attom Data Solutions, to WTOP. “Median home prices nationwide are up 9.4 percent so far in 2017, the fastest pace of appreciation through the first three quarters of a year since 2013.”
While D.C. homeowners are doing well, they have been beaten out by those in San Jose, California, of which 61 percent are equity rich, WTOP explained. Seattle homeowners have made massive strides, WTOP noted, with the number of equity rich owners more than doubling since 2012, and only 3 percent of owners considered underwater.