The second quarter of 2025 brought a mixed bag for Tri-Cities homeowners. Overall, equity remains strong, but beneath the surface, there are signs of stress in some zip codes. The data for this local analysis is from ATTOM’s Q2 U.S. Home Equity and Underwater Report.

At a Glance

• Total mortgaged properties: 81,052
  ↗ Up 0.4% from Q1 2025 (80,758)
  ↗ Up 2.1% from Q2 2024 (79,350)
• Seriously underwater mortgages: 2,031 (2.51% of all mortgaged homes)
  ↗ Up 10.6% from last quarter
  ↗ Up 17.6% from last year
• Equity-rich mortgages: 45,359 (55.96% of all mortgaged homes)
  ↘ Down 2.3% from last quarter
  ↗ Up 1.5% from last year

 Where Trouble Is Growing

While more than half of homeowners still have a healthy equity cushion, a few communities saw sharper increases in seriously underwater mortgages. These are loans in zip codes where the borrower owes more on the property than its value.

Quarter-over-Quarter (Q2 vs. Q1 2025):

• Bristol (37620) – +41 loans
• Kingsport (37660) – +28 loans
• Greeneville (37743) – +26 loans

Year-over-Year (Q2 2025 vs. Q2 2024):

• Greeneville (37743) – +52 loans
• Kingsport (37660) – +48 loans
• Bristol, VA (24202) – +45 loans

Although these numbers are still small in the big picture, they signal pockets of housing stress.

 Where Equity Is Building

On the flip side, several ZIP codes are seeing impressive gains in equity-rich mortgages—where homeowners owe less than half their home’s value.

Quarter-over-Quarter (Q2 vs. Q1 2025):

• Elizabethton (37643) – +81 loans
• Jonesborough (37659) – +62 loans
• Erwin (37650) – +41 loans

Year-over-Year (Q2 2025 vs. Q2 2024):

• Johnson City (37604) – +336 loans
• Jonesborough (37659) – +293 loans
• Johnson City (37601) – +205 loans

These are the areas riding strong appreciation trends and benefiting from stable, long-term homeownership with fewer homeowners tapping equity through refinancing.

 Big Picture Takeaways

The Tri-Cities mortgage landscape is still leaning positive, but it’s not without its warning signs. Equity-rich homeowners have a market working in their favor. Those with seriously underwater mortgages should have a strategy in place and keep a close eye on the market.

The above report is a product of human analysis with the assistance of AI.

Categories: REAL ESTATE