National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Seriously Underwater U.S. Properties on Rise
The latest research by ATTOM Data Solutions shows at the end of the first quarter of 2019, more than 5.2 million U.S. properties were seriously underwater, up by more than 17,000 properties from a year ago. That means the combined balance of loans secured by the property was at least 25% higher than the property’s estimated market value.
The number of seriously underwater properties at the end of Q1 2019 represents 9.1% of all U.S. properties with a mortgage, up from 8.8% in the previous quarter, but down from 9.5% in Q1 2018, according to ATTOM’s Q1 2019 U.S. Home Equity & Underwater Report.
ATTOM’s Todd Teta says, “With home prices increasing at a slower pace in 2018 than in previous years, the potential for people to climb out from mortgages that are underwater or advance into equity-rich territory, tends to be reduced. However, only one in 11 mortgages are seriously underwater today, compared to nearly one in three during the depths of the recession.”
States with the highest share of seriously underwater properties were Louisiana (20.7%); Mississippi (17.1%); Arkansas (16.3%); West Virginia (16.2%); and Illinois (16.2%).
States with the highest share of equity-rich properties were California (43%); Hawaii (38.1%); New York (34.2%); Washington (33.2%); and Vermont (32.8%).
For comments, questions or concerns, please contact Dennis Kaiser
