Negative equity – the percentage of homeowners who owe more on their mortgages than their homes are worth – continues to cast a pall over the U.S. housing market, even though more underwater homeowners are surfacing all the time.
The Zillow Negative Equity Report for the third quarter of 2015 found that just over 13 percent of homeowners with a mortgage are upside down. Last year, it was almost 17 percent.
Abnormally high rates of negative equity are hard on homeowners who can't sell or refinance, but Zillow found that high negative equity rates also affect whole communities. All homes sell more slowly in areas with a high negative equity rate.
The homes most likely to be underwater are entry-level properties, restricting supply and making it hard to buy a home in those markets, as well.
Here are the large metros with the highest percentage of homeowners underwater. Las Vegas has topped this list for four and a half years.
Largest share of underwater homeowners
- Las Vegas – 22.1 percent
- Chicago – 20.6 percent
- Atlanta – 18.6 percent
- St. Louis – 17.6 percent
- Baltimore – 16.9 percent
Read the full report on Zillow Research.
Related:
- Las Vegas: The Town That Choked on Debt
- 2016 Housing Forecast: Suburban Living Heats Up
- Where Firefighters and Teachers Can Afford to Buy Homes
from Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News http://www.zillow.com/blog/negative-equity-q3-2015-187723/
via Reveeo
No comments:
Post a Comment