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Mountain West Homeowners Are Equity Rich After Housing Boom
June 6, 2022

Mountain West Homeowners Are Equity Rich After Housing Boom

by The CE Shop Team

Mountain West Homeowners Win Big  

ATTOM, a leading real estate data provider for land and property data recently released its first-quarter 2022 U.S. Home Equity & Underwater Report. The report found a record $27 trillion in homeowner equity in the U.S.  

U.S. Homeowners Have Gained Serious Equity 

Nearly half of all homeowners nationwide with mortgages are considered “equity rich”, a slight increase from 2021’s fourth-quarter report of 42.0%. This means that they owe less than 50.0% of their property’s market value. Equity rich is the loan to value ratio of 50.0% or lower, meaning the property owner had at least 50.0% equity. This is one of the largest equity gains in recent history following the Great Recession.  

Across the nation, 45 states had equity-rich levels increase from the fourth quarter of 2021 to the first quarter of 2022.  

“Homeowners continue to benefit from rising home prices,” said Rick Sharga, executive vice president of market intelligence for ATTOM in the report. “Record levels of home equity provide financial security for millions of families and minimize the chance of another housing market crash like the one we saw in 2008. But these higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market.” 

Source: CoreLogic

Which Homeowners are the Biggest Winners? Moutain West   

Of the mountain west region, Idaho currently leads the country, with nearly 70.0% of Idahoan homeowners gaining serious equity. Following Idaho in the list of mountain west states was Utah and Arizona ranking third and fourth, where more than 60.0% of property owners owing less than 50.0% of their property’s value. Colorado and Nevada ranked 12th and 13th, respectively.  

“What we’ve seen really is a migration of people from higher-cost states who are selling their homes, taking the cash and buying bigger homes that are much less expensive in states like Idaho and Utah or Arizona,” Sharga reported.  

While New Mexico did not make the top five rankings, the state still saw the largest gain in equity-rich homeowners, increasing from 35.3% in the fourth quarter of 2021 to 43.4% in the first quarter of 2022. Montana also saw a noticeable increase from 40.5% in the fourth quarter of 2021 to 45.7% in the first quarter of 2022.  

Here is the full list of states rankings in ATTOM’s report:  

  1. Idaho – 68.8% 
  2. Vermont – 68% 
  3. Utah – 63.6% 
  4. Washington – 60.9% 
  5. Arizona – 60.9% 

Mountain West Homeowners Are Equity Rich After Housing Boom

What will the second quarter of 2022 hold? That remains to be seen, but what remains to be true is that homes are historically always appreciating.  

“It’s likely that equity will continue to grow through the rest of 2022, although home price increases should moderate as the year goes on,” Sharga said in the report. “Rising interest rates, the highest inflation in 40 years, and the ongoing supply chain disruptions due to the war in Ukraine are likely to weaken demand and slow down home price appreciation.” 

Given the current state of the economy, inflation rates, mortgage rates, and the like, homeownership is still a major source of wealth for Americans, no matter their income.  

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