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61 October 2024 J O U R N A L Union counties, all in New Jersey). It also included Cook, Kendall, McHenry, and Will counties in Illinois and Lake County in Indiana. In 33 of the 51 counties judged most vulnerable to market drop-offs in Q2 of 2024, major homeownership costs (mortgage payments, property taxes, and insurance) on median-priced single-fam- ily homes were assessed as seriously unaffordable. This indicates that those costs accounted for at least 43% of the typical local pay. Major costs for average residences sold in the country during the second quarter came to 35.1% of average local wages. The highest percentages in the most at-risk markets were in: • Kings County (Brooklyn), New York (111.8% of average local wages needed for major ownership costs) • Riverside County, California (74.4%) • Washington County (St. George), Utah (70.4%) • Richmond County (Stated Island), New York (66.8%) • Passaic County, New York (outside New York City) (65.3%) In 34 of the 51 most at-risk counties, at least 5% of residential mortgages were underwater in the second quarter of 2024. Homeowners who owed more on their mortgages than the estimated value of their residences made up 5.1% of all mortgages in the country. Of the 51 counties that were considered to be most at-risk, Tangipahoa Parish, Louisiana (east of Baton Rouge) had the highest percentage of underwater residents (26.1%); followed by Peoria County, Illi- nois (16.3%); Lake County (Gary), Indiana (13.2%); Orleans Parish (New Orleans), (13.1%); and Montgomery County (Day- ton), Ohio (11.9%). Overall, in 39 of the 51 most vulnerable counties, more than one out of every 1,000 residential homes faced a foreclosure action in the second quarter of 2024. One in 1,575 houses across the country was in that situation. Additionally, in contrast to 33 of the most at-risk counties, some 18 of the 51 counties deemed least vulnerable to market issues in the second quarter of 2024 had major ownership costs on medi- an-priced single-family houses that were substantially unaffordable. WHICH STATES HAVE THE MOST UNDERWATER MORTGAGES? W hile homeowners are wit- nessing a dramatic reversal in the home equity trend— which had previously shown three quar- ters of declines in a row—homeowner equity is increasing following notable price surges throughout the spring 2024 buying season. A new ATTOM report ex- amines the present trends in underwater mortgages and homeowner equity, the underlying causes of these trends, and the states most affected. However, there is good news for significantly underwater mortgages. Serious underwater mortgages are profiting nationwide from economic factors including rising property values and increased demand as a result of low supply. But certain states are still having trouble, especially those in the Midwest and South. More U.S. Homeowners Remain Equity-Rich In Q2 of 2024, ATTOM's U.S. Home Equity & Underwater Report indicat- ed that a larger number of mortgaged residential properties in the country were deemed equity-rich. A property is consid- ered equity-rich if the total estimated loan sums secured by it do not exceed 50% of its estimated market value. At the national level, the share of severely underwater mortgages in the U.S. fell in Q2 and reached its lowest point since at least 2019. Gains in home equity during Q2 coincided with a surge in home pric- es during the spring 2024 purchasing season, with the median national price rising by 9% on a quarterly basis to a record $360,000. The difference between the estimated worth of properties and what homeowners owe on their loans grows as property prices rise—now own- ing more stock. Gains in home equity during Q2 coincided with a surge in home prices during the spring 2024 purchasing season, with the median national price rising by 9% on a quarterly basis to a record $360,000.