By DON FENLEY

Two reports that speak to the stability and structural strength of the Tri-Cities housing market have been released since ATTOM’s risk analysis of 589 county markets ranked Sullivan and Washington counties among those least vulnerable to a downturn. The reports are insightful in today’s market that is undergoing a restructuring and has seen a local sales decline and slowing of the home price growth rate. ATTOM is a leading curator of land, property data, and real estate analytics.

UNDERWATER MORTGAGES

October’s Home Equity & Underwater Report shows there were 1,817 properties with seriously underwater mortgages in the Tri-Cities two metro areas. There were 1.822 this time last year.

Since the pandemic, the equity position of most mortgages has significantly increased. Over half of the mortgaged properties are classified as equity rich. More about that later.

A property is considered seriously underwater when the loan to value ratio is 125% or higher, meaning the owner owed at least 25% more than the estimated value of the property.

Equity gains driven by the hot post pandemic market have benefited those with financial challenges because it gave them options other than the foreclosure route.

The largest number of properties with seriously underwater mortgages  are in the region’s two largest markets, Sullivan and Washington counties. Both have a 1.8% share. The county with the largest share is Johnson Co., 3.9% up from 3.3% in October last year.

FORECLOSURE FILINGS

There were 26 properties with new foreclosure filings in the region in October, up 18,8% from October last year. The foreclosure dynamics are much the same as underwater properties. Equity increases have benefitted owners with additional options.

So far this year the filing pattern has increased but trail last year and pervious years.

There were seven lender repossessions last month and 12 notices of trustee sales.

“Foreclosure activity remains challenging for homeowners, with starts and completed foreclosures up in October,” said Rob Barber, CEO of ATTOM. “As we approach 2025, the recent Fed rate cut, and the new administration could affect mortgage rates and market stability. While seasonal factors may slow things down briefly, we’ll be watching closely to see how these recent dynamics affect the market in the coming year.”

Categories: REAL ESTATE