While homeowner equity has been ramping up over the last several quarters, these gains appear to be cooling down—though slightly. According to property data provider ATTOM’s Q3 2024 U.S. Home Equity & Underwater Report, 48.3% of mortgaged homes were considered equity-rich during Q3 2024, compared with 49.2% in Q2 2024. While dropping slightly quarter-over-quarter, this is still higher than the 47.4% of mortgaged homes recorded during the same time last year. In general, home equity gains are at historically high levels. In comparison, only 26.5% of homes in early 2020 were considered equity-rich.
“Homeowner equity typically mirrors home-price trends, and the third quarter of this year followed that pattern. Equity remained elevated as the value of residential properties has surged consistently over the years. However, it held steady this quarter, reflecting the cooling of earlier sharp price increases,” said Rob Barber, CEO for ATTOM. “Despite the flat pattern, home equity keeps providing a significant boost to the economy in the form of financial leverage that tens of millions of households can use to finance major purchases or investments.”