Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 107 NUMBER 36 ■ MECKTIMES.COM
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TUESDAY, SEPTEMBER 5, 2023
The Mecklenburg Times debuts new and improved web experience Page 2
U.S. housing market avoids crash, but challenges remain for buyers and sellers
Equity improves for U.S. homeowners as housing market boom shows signs of revival
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Job optimism holds steady: 1 in 4 workers currently looking for a new role Page 4
MARGENAU: Going to the top is the wrong way Page 5
GOLDMAN: How to hop, skip and jump your way to success Page 6
How to Plan Your Retirement Strategically Page 7
ATTOM has released its second-quarter 2023 U.S. Home Equity & Underwater Report, which shows that 49 percent of mortgaged residential properties in the United States were considered equityrich in the second quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values. The portion of mortgaged homes that were equity-rich in the second quarter of 2023 increased from 47 percent in the first quarter of 2023, to the highest point in at least four years. With home prices rebounding across the U.S., the report found that the level of equity-rich mortgagepayers went up from the first quarter of 2023 to the second quarter of 2023 in 45 of the nation’s 50 states. The gains followed two straight quarterly drop-offs caused by a temporary slowdown in the U.S. housing market that had threatened to end a decade-long run of price and equity growth. The secondquarter upturn marked another sign of how the market shift has helped homeowners, as home-seller profits also spiked. While equity-rich levels rose in the second quarter, the report also shows that less than 3 percent of mortgaged homes in the U.S., or one in 36, were considered seriously underwater in the second quarter of 2023. That meant they had a combined estimated balance of loans secured by the
property of at least 25 percent more than the property’s estimated market value. Just 2.8 percent of mortgaged-homes were seriously underwater in the second quarter of this year, also the lowest point since at least 2019. The latest figure was down from 3 percent in the prior quarter and 2.9 in the second quarter of 2022. “The second-quarter market revival bestowed immediate benefits on homeowners around the nation in the form of better profits for sellers and rising equity for those staying put. Equity levels were high even during the recent downturn, and now they are going back up and better than ever,” said Rob Barber, CEO for ATTOM. “It is well worth noting that the market remains in flux and the recent improvement could easily be temporary. Lots of changing forces are at work affecting whether boom times are really back, especially amid a recent increase in mortgage rates. But with the 2023 peak buying season still underway, it seems that homeowners can reasonably expect their household balance sheets to grow a bit more in the near future.” Equity for U.S. homeowners improved in the second quarter as prices for singlefamily homes and condos nationwide rose throughout most of the country, reversing a market slowdown that had run from the middle of last year to the early part of this year. Nationwide, the median home value shot up 10 percent in the second quarter to yet another all-time high of $350,000, after
dropping 7 percent over the prior three quarters. The rebound came amid multiple factors that combined to put more financial resources in the hands of house hunters during a time of rising demand and tight housing inventory. Home mortgage rates were down by onehalf to three-quarters of a point for a 30year fixed loan during the second quarter, after more than doubling in 2022 to about 7 percent. At the same time, consumer price inflation dipped down under 4 percent, the stock market improved after a year of ups and downs, and unemployment remained less than 4 percent. That happened as the peak annual buying season revved up during a time when the supply of homes for sales around the U.S. remained historically low. With several months to go in the 2023 home-buying season, the potential for more gains remains in place. But that will depend heavily on whether key market drivers continue to improve or decline. Largest increases in equity-rich share of mortgages spread across Midwest The portion of mortgages that were equity-rich grew in most states around the U.S. from the first quarter of 2023 to
PLEASE SEE EQUITY ON PAGE 2
“The takeaway for employers, especially those facing recruiting challenges, is that skilled workers are willing to make a move for the right opportunity.” Dawn Fay, Robert Half.
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