A home is considered equity rich when the loan balances secured by the property are no more than half the home’s estimated value. In other words, if your home is worth twice what you owe on it, you’re equity rich. That’s a good situation for a homeowner to be in and, according to ATTOM Data Solutions, a lot of homeowners are currently reaping the benefits. “Homeowner balance sheets continue to benefit in a huge way from the boom times in the form of elevated equity that can be used to help finance all kinds of things, from home renovations to business startups,” Rob Barber, ATTOM’s CEO, says. But just how many homes can be considered equity rich? Well, according to ATTOM’s analysis, 45.8 percent of all mortgaged residential properties were equity rich in the first quarter. That’s down from 46.1 percent at the end of last year and about 1.5 percent lower than the first quarter of 2023. But while the number of equity rich properties has fallen over the past 12 months, it remains high. According to Barber, the spring buying season will help determine whether it continues to trend lower or a new long-term market pattern develops. (source)
