Rising home values in Dallas-Fort Worth are making homeowners ‘equity rich’
The rise in property prices in North Texas in recent years is making local homeowners richer.
Dallas-Fort Worth is one of the top markets in the country where homeowners abound in stocks. According to a new report from Attom Data Solutions, they have at least 50% equity in their homes compared to what they owe on their properties.
The California-based real estate data firm estimates 39.5% of D-FW homes are considered equity rich. That equates to roughly 28% of the US states rated as equity rich in the third quarter of 2020.
With home sales booming in many regions of the country, the COVID-19 pandemic had almost no impact on property values.
“Third quarter homeowner equity added another pebble to the stack of markers showing that the US housing market continues to weather the broad economic downturn this year,” said Todd Teta of Attom Data in the report. “House prices continue to rise, improving homeowners’ balance sheets in most of the country.
“With the foundations in the real estate market still shaky as the coronavirus continues to be a threat, we will continue to monitor closely the various metrics, including equity,” he said. “But as was the case during the pandemic, the market is strong and homeowners remain able to benefit from it.”
According to Attom Data, the D-FW area ranks seventh among the subway areas with the most equity-rich houses nationwide. It’s also the only Texan market in the top 10. Of the major cities in Texas, Houston had the lowest proportion of equity-rich properties at around 31%, according to Attom Data.
The San Jose region of Northern California leads the country in the country. Almost 64% of homeowners are considered to be rich in equity.
Less than 3% of North Texas homes with mortgages have been rated seriously underwater, with debt outweighing property value.
Average property sales prices in North Texas have increased nearly 50% over the past five years, significantly increasing the number of shareholders in their properties.
The D-FW residential areas with the largest proportion of equity-rich houses include:
- The postal code 76105 of East Fort Worth.
- The postal code 75212 of West Dallas.
- The postal code 75224 of Oak Cliff.
All three are neighborhoods with large numbers of owners who have little mortgage debt.
The Park Cities and North Dallas were the areas with the highest percentage of underwater homes, according to Attom Data.