The BDN is exploring Maine’s housing disaster from each potential angle, from the way it impacts house costs, to what it means for Mainers throughout the state. Learn our ongoing protection right here and fill out this kind to inform us what you need to know.
Maine householders accrued wealth quicker than these in all however one different state due to the persevering with rise in house costs, a brand new report discovered.
The portion of mortgaged houses thought-about fairness wealthy, the place householders have not less than 50 p.c fairness in the home, rose to 56.3 p.c within the second quarter of this yr, up from 48.5 p.c within the first three months, a report launched Thursday by actual property knowledge monitoring agency ATTOM Information Options discovered.
The numbers mirror the upside of the recent actual property market in Maine, the place costs continued to rise to a median of $360,825 in June, up greater than 16 p.c from the prior yr regardless of fewer houses on the market, in response to the Maine Affiliation of Realtors.
The pattern is most pronounced in Cumberland County, the place Larger Portland led the Northeast area with 62.6 p.c of equity-rich houses, up from 52.1 p.c within the first quarter. Aroostook was lowest amongst Maine counties at 34 p.c, but it surely was nonetheless up from 25.4 p.c over the earlier interval.
Maine beat the nationwide common of 48 p.c, up from 45 p.c within the second quarter. The state’s achieve between the primary and second quarters of this yr was larger than each different state aside from Wyoming.
“Whereas house worth appreciation seems to be slowing down resulting from larger rates of interest on mortgage loans, it appears possible that householders will proceed to construct on the report quantity of fairness they’ve for the remainder of 2022,” Wealthy Sharga, govt vp at ATTOM, mentioned.
ATTOM derived its knowledge from public mortgage and deed belief knowledge from greater than 155 million properties nationwide.
Sharga mentioned the equity-rich house share is at a report excessive, whereas the share of houses significantly underwater with a mortgage steadiness larger than the property’s truthful market worth, is at its lowest. It’s a a lot decrease quantity than the 3o p.c of Individuals who owed greater than their house was value in the course of the housing bubble within the early 2000s.
In Maine, the share of house mortgages which can be significantly underwater declined to 2.2 p.c of the 264,651 excellent mortgages within the second quarter in contrast with 3.1 p.c within the first three months of this yr. In Larger Portland, the speed dropped to 1.1 p.c from 1.7 p.c.
Even householders dealing with foreclosures have house fairness that would assist them type by way of their monetary issues, Sharga mentioned. Some 214,800 U.S. householders confronted foreclosures in the course of the second quarter, however 91 p.c of them had some fairness constructed up of their houses.
“These householders have the chance to leverage this fairness to both safe short-term financing to resolve their delinquencies, or to promote their properties at a revenue and keep away from a foreclosures public sale,” he mentioned.