ATTOM released its Q1 2022 Home Equity Report This Week in Real Estate finding 44.9 percent of mortgaged residential properties are considered equity-rich, up from 31.9 percent in the first quarter of 2021. According to OJO Labs, 52 percent of homes in the top 50 metro areas sold for above the list price in April, up from 42 percent a year earlier. Below are a few newsworthy events from the second week of May that influence our business:
52% of Homes Sold Above List Price in April. Competition abounds in the real estate market, and buyers are continuing to bid up home prices this spring. Fifty-two percent of homes sold above the list price in April, up from 45% in March and from 42% a year earlier, according to OJO Labs, a real estate technology company. Seattle tied for the fourth most-competitive metro area with 66% of homes sold above the list price and at an average of $58,275.20 higher (2nd highest). Portland, Washington D.C., Salt Lake City, Richmond, and Columbus all saw 60% of their homes sell above the list price in April and Portland at an average of $20,561.14 (8th highest).
Average U.S. Mortgage Interest Rate Rises to 5.53%, Applications up? The average interest rate on the most popular U.S. home loan rose to its highest level since 2009 last week and demand for mortgages jumped for a second straight week despite the rising costs, Mortgage Bankers Association data showed on Wednesday. The average contract rate on a 30-year fixed-rate mortgage increased to 5.53% in the week ended May 6 from 5.36% a week earlier, the MBA survey showed. Mortgage applications rose last week for the second week in a row. The MBA said its Purchase Composite Index, a measure of all mortgage loan applications for purchase of a single family home, increased 4.5% from a week earlier. However, this was still below the levels seen just a month ago and almost 8% lower than the same week one year ago. The housing market, flashing signs of overheating over the past two years, is seen as a particularly rate-sensitive sector and Fed policymakers are keen to sap some of its current double digit annual price growth. Whether they can cool the market as much as they hope remains to be seen, with price growth fueled by record-low housing stock, unusually high household savings, an extremely tight job market and increased worker mobility.
Homeowner Equity Grows Again Across U.S. in First Quarter. ATTOM released its first quarter 2022 U.S. Home Equity & Under Water Report Thursday, which shows that 44.9 percent of mortgaged residential properties in the United States were considered equity-rich in the first quarter, meaning that the estimated market value is greater than 50 percent of the loan balances secured by those properties. The portion of mortgaged homes that were equity-rich in the first quarter of 2022 inched close to half, up from 41.9 percent in the fourth quarter of 2021 and from 31.9 percent in the first quarter of 2021. “Homeowners continue to benefit from rising home prices,” said Rick Sharga, executive vice president of market intelligence for ATTOM. “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. Across the country, 45 states saw equity-rich levels increase from the fourth quarter of 2021 to the first quarter of 2022. Year over year, equity-rich levels rose in 48 states. These latest equity trends came as the decade-long U.S. housing market boom continued from late 2021 into early 2022.
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