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Thursday, June 9, 2016

Still underwater on your home? See where you stand

from  Cindy BarthEditor, Orlando Business Journal

In the Orlando-Kissimmee-Sanford metro area, 78,948 — or 17 percent, of all residential properties with a mortgage — were in negative equity as of first-quarter 2016 compared with 109,875 — or 23.6 percent — in the year-ago period, a new report from CoreLogic shows.
An additional 13,346 properties, or 2.9 percent, were in near-negative equity for first-quarter 2016 compared with 15,075, or 3.2 percent, in first-quarter 2015.
Negative equity, often referred to as underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in home value, an increase in mortgage debt or a combination of both.
Nationwide, the total number of mortgaged residential properties with negative equity stood at 4 million, or 8 percent, in first-quarter 2016, a decrease of 6.2 percent from the fourth quarter of 2015 and a decrease of 21.5 percent year-over-year.
"More than 1 million homeowners have escaped the negative equity trap over the past year. We expect this positive trend to continue over the balance of 2016 and into next year as home prices continue to rise," said Anand Nallathambi, president and CEO of CoreLogic. "Nationally, the CoreLogic Home Price Index was up 5.5 percent year over year through the first quarter. If home values rise another 5 percent uniformly across the U.S., the number of underwater borrowers will fall by another one million during the next year."
Other highlights from CoreLogic's first-quarter report:
  • Nevada had the highest percentage of homes in negative equity at 17.5 percent, followed by Florida (15 percent), Illinois (14.4 percent), Rhode Island (13.3 percent) and Maryland (12.9 percent). Combined, these top five states account for 30.2 percent of negative equity in the U.S., but only 16.5 percent of outstanding mortgages.
  • Texas had the highest percentage of homes with positive equity at 98.1 percent, followed by Alaska (97.8 percent), Hawaii (97.8 percent), Colorado (97.5 percent) and Washington (97.2 percent).
  • Of the 10 largest metropolitan areas by population, Las Vegas-Henderson-Paradise, Nev., had the highest percentage of homes in negative equity at 19.9 percent, followed by Miami-Miami Beach-Kendall (19.6 percent); Chicago-Naperville-Arlington Heights, Ill. (16.7 percent); Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va. (10.9 percent); and New York-Jersey City-White Plains, N.Y.-N.J. (6 percent).
  • Of the same 10 largest metropolitan areas, San Francisco-Redwood City-South San Francisco had the highest percentage of homes in a positive equity position at 99.4 percent, followed by Houston-The Woodlands-Sugar Land, Texas (98.3 percent); Denver-Aurora-Lakewood, Colo. (98.3 percent); Los Angeles-Long Beach-Glendale, Calif. (96.1 percent); and Boston (94.3 percent).
  • Of the total $299.5 billion in negative equity nationally, first liens without home equity loans accounted for $166 billion, or 55 percent, in aggregate negative equity, while first liens with home equity loans accounted for $134 billion, or 54 percent.
  • Among underwater borrowers, approximately 2.4 million hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $244,000 and the average underwater amount is $68,000.
  • Approximately 1.6 million of all underwater borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $307,000 and the average underwater amount is $84,000.
  • The bulk of positive equity for mortgaged residential properties is concentrated at the high end of the housing market. For example, 95 percent of homes valued at $200,000 or more have equity compared with 87 percent of homes valued at less than $200,000.

Presented by Dawn Deegan, Broker/Owner of Make A Brilliant Move Realty. Dawn holds the designations of ABR (Accredited Buyer Representative), CRS (Certified Residential Specialist), GRI (Graduate Realtor® Institute), Short Sale Foreclosure Resource (SFR), and is a Certified Negotiation Expert (CNE). She is Quality Service Certified (QSC), holds the Transnational Referral Certification (TRC), and is Gold Key Certified. Dawn is devoted to providing only the best possible services and expertise to her Buyers and Sellers of residential Real Estate in the Greater Orlando area. This area includes Windermere, Orlando, Winter Park, Baldwin Park, and Davenport. Dawn’s emphasis is on achieving the best possible prices through thorough market knowledge, communications, and transactional expertise, resulting in a quality experience for the Buyer or Seller of Real Estate. Contact Dawn Deegan at 407 488 8074 or at Visit her at

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