Housing
4 States Account for Nearly a Third of Underwater Mortgages
Published:
Last Updated:
The aggregate value of negative equity rose by $7 billion in the fourth quarter to a nationwide total of $348.8 billion. The data were released Tuesday by research firm CoreLogic.
Some 20% of all mortgaged properties have positive equity below 20%, and 2.8% had less than 5% positive equity at the end of the third quarter. These levels are slightly higher than at the end of the third quarter of 2014, when 19% of all properties had positive equity below 19% and 2.6% had less than 5% positive equity.
CoreLogic’s chief economist noted:
The share of homeowners that had negative equity increased slightly in the fourth quarter of 2014, reflecting the typical weakness in home values during the final quarter of the year. Our CoreLogic [home price index] dipped 0.7 percent from September to December…. However, from December-to-December the CoreLogic index was up 4.8% and the negative equity share fell by 2.6 percentage points.
The five states with the highest percentage of homes with negative equity are Nevada (24.2%), Florida (23.2%), Arizona (18.7%), Illinois (16.2%) and Rhode Island (15.8%). Just the first four of these states account for about 32% of all underwater mortgages.
The five states with the highest percentages of homes with positive equity are Texas (97.4%), Alaska (97.2%), Montana (97.0%), Hawaii (96.3%) and North Dakota (96.2%).
The five metropolitan areas with the highest percentage of properties with negative equity are Tampa-St. Pete-Clearwater, Fla. (24.8%), Phoenix-Mesa-Scottsdale, Ariz. (18.8%), Chicago-Naperville-Arlington Heights, Ill. (18.5%), Riverside-San Bernardino-Ontario, Calif. (14.8%) and Atlanta-Sandy Springs-Roswell, Ga. (14.6%).
The five metro areas with the highest percentage in positive equity are Houston-The Woodlands-Sugar Land, Texas (97.7%), Dallas-Plano-Irving, Texas (97.1%), Anaheim-Santa Ana-Irvine, Calif. (96.4%), Portland-Vancouver-Hillsboro, Ore. (96.4%) and Denver-Aurora-Lakewood, Colo. (96.2%).
ALSO READ: America’s Happiest (and Most Miserable) States
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.