More homeowners fell underwater at the end of last year as home prices continued to drop in markets across the country.
CoreLogic reports today that 23.1% of residential properties with a mortgage were underwater, or were worth less than the amount owed, at the end of the fourth quarter. That’s up from 22.5% in the third quarter. That represented a rise from 10.8 million to 11.1 million borrowers underwater from the third to fourth quarters.
The report underscores one of the biggest risks facing the U.S. economy as home prices resume their decline: More homeowners risk being trapped in homes that they can’t easily sell if they want to move for jobs or if they run into trouble making their loan payments. These borrowers will be a drag on the “trade up” part of the housing market, leaving sales more dependent on first-time buyers and investors.
“Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish,” Mark Fleming, chief economist with CoreLogic, said in a statement.
Wednesday, March 09, 2011
23% of mortgaged homes are underwater
According to CoreLogic, the number of underwater mortgages is rising again:
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"According to CoreLogic, the number of underwater homes is rising again"
ReplyDeleteExcept in DC where negative (& near negative) equity is under 20% of all homes with mortgages:
http://cr4re.com/charts/charts.html?Delinquency#category=Delinquency&chart=CoreLogicNegEqStateQ4.jpg
This is down from the last report where negative (& near negative) equity in DC was exactly 20%
http://calculatedriskimages.blogspot.com/2010/08/corelogic-negative-equity-q2-2010.html
And down significantly when negative (& near negative) equity was around 28%
http://1.bp.blogspot.com/_pMscxxELHEg/SoSUJx9vOYI/AAAAAAAAGGQ/KICUi2O2X-4/s1600-h/NegativeEquityQ2.jpg
DC once again proves that "its different here".
If you are color blind, this graph from RealtyTrac will look like good news to you:
ReplyDeletehttp://www.realtytrac.com/mapsearch/district%20of%20columbia.html
Otherwise; It is not good news.
That is a foreclosure map, by the way.
ReplyDeleteOh no, actually, that is FANTASTIC news! See time was, there were over 1,000 foreclosures in DC. Now its down to 581. Likewise, the rate going forward is looking downright rosy:
ReplyDeletehttp://www.realtytrac.com/trendcenter/default.aspx?address=DC
A mere 22 foreclosures for January 2011? Wow! Last January, DC had 178. The January before that 207. Things just keep looking better and better!!!
Need to get used to the new flow of comments. For now, I will repost this here, so it will be easier to laugh at you when you try to explain how your insipid foreclosure report (best I have seen in 2+ years of tracking realtytrac data) is bad news:
ReplyDeleteOh no, actually, that is FANTASTIC news! See time was, there were over 1,000 foreclosures in DC. Now its down to 581. Likewise, the rate going forward is looking downright rosy:
http://www.realtytrac.com/tren...
A mere 22 foreclosures for January 2011? Wow! Last January, DC had 178. The January before that 207. Things just keep looking better and better!!!
Yes, foreclosures rates went from "Astronomical" to "High". That is **GREAT** News!
ReplyDeleteExpand 22 foreclosures in a month? In a city of 309K residences? this is "high" to you?
ReplyDelete