"ATTOM's report said Q4 2025 marked the lowest share of equity-rich properties since late 2021 while emphasizing that overall equity levels continue to compare favorably with historical benchmarks. In early 2020, only about one-quarter of mortgaged homes were considered equity rich. After years of rapid gains, homeowner equity is settling into a more sustainable range, and that's not a negative sign for the market, said Rob Barber, CEO at ATTOM."
"Between the third and fourth quarters of 2025, the portion of equity-rich mortgaged homes declined in 42 of 49 states, typically by less than 2 percentage points. The same number of states also recorded year-over-year decreases. The largest year-over-year declines occurred in Florida, Kentucky, South Carolina, New Mexico and Arizona. By contrast, modest gains were scattered across the Northeast and Midwest with increases reported in Alaska, North Dakota, Illinois, South Dakota and New York."
Approximately 3% of mortgaged homes had loan balances at least 25% higher than estimated value in Q4 2025, up from 2.8% the prior quarter. Q4 2025 marked the lowest share of equity-rich properties since late 2021, though overall equity levels remain strong by historical standards. Equity-rich mortgages rose from roughly 27% in 2019 to nearly 50% by 2022 as prices surged, while seriously underwater rates fell by more than half before stabilizing near historic lows. Between Q3 and Q4 2025, equity-rich shares declined in 42 of 49 states, with the largest year-over-year drops in Florida, Kentucky, South Carolina, New Mexico and Arizona.
Read at www.housingwire.com
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