By DON FENLEY

At a time when housing markets across the country are recalibrating, one thing continues to stand out in Northeast Tennessee and Southwest Virginia. Equity remains deeply embedded in the local housing stock.

According to ATTOM’s Q4 U.S. Home Equity & Underwater Report, 45% of mortgaged residential properties in the United States were considered equity rich. Most of the regional markets in the analysis were higher than the U.S. average.

Equity rich means that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values.

“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. “Even with a modest pullback in equity-rich properties and a slight uptick in seriously underwater homes, overall equity levels remain remarkably strong by historical standards. As we move toward the spring buying season, these numbers suggest a housing market that is stabilizing rather than overheating, giving homeowners a solid financial foundation while allowing for healthier market dynamics.”

During the past year, the volume of U.S. equity-rich properties declined 17%. The Tri-Cities decline was 6.5%. Homeowners have primarily used their equity as a strategic financial resource for home renovations, debt consolidation, and as a financial safety net.

Equity levels began increasing in the Tri-Cities post-pandemic housing rush. That rush has diminished to a steady growth rate.

Categories: REAL ESTATE