There were 23,348 fewer St. Louis homeowners underwater on their mortgage (owe more than the current value of their home) or, in other words are in a “negative equity” position, at the end of 2012 than there were at the beginning of the year, according to the Zillow® Negative Equity Report for 4th quarter 2012. At the end of 4th quarter 2012, 26.9 percent of St Louis homeowners with a mortgage were underwater on their mortgage, slightly lower than the national rate of 27.5 percent.
The Zillow report forecasts what is likely to happen in the current year as well with regard to homeowners with negative equity and the outlook for St Louis homeowners is not as optimistic as on the national level. Nationally, it is forecast that the percentage of underwater homeowners will fall from 27.5 percent to 25.5 percent by the end of 2013 and for St. Louis the forecast is actually for a slight increase in the rate, going from 26.9 percent to 27.0 percent by year end.
An interesting component of the Zillow report is that it also predicts, or forecasts, what the change will be in the number of underwater homeowners in the current year. It’s forecast calls for the number of underwater mortgages to continue to decline, falling to 25.5 percent by the end of this year which, if it happens, will free nearly 1 million more homeowners from a negative equity position.
| Metropolitan Area | Q4 2012: % of Homeowners w/ Mortgages in Negative Equity | # of Homeowners Freed From Negative Equity in 2012 | Q4 2013: Forecasted Negative Equity Rate | Minimum # of Homeowners Expected to be Freed From Negative Equity in 2013 iv |
| UNITED STATES | 27.5% | 1,908,732 | 25.5% | 999,601 |
| New York | 19.4% | 17,394 | 19.1% | 6,513 |
| Los Angeles | 24.3% | 72,936 | 20.0% | 72,696 |
| Chicago | 36.9% | 41,208 | 37.3% | N/A |
| Dallas-Fort Worth, Texas | 24.2% | 59,461 | 21.3% | 31,434 |
| Philadelphia | 23.8% | 1,462 | 23.1% | 7,356 |
| Washington, DC | 28.0% | 45,207 | 25.8% | 24,911 |
| Miami-Fort Lauderdale, Fla. | 39.6% | 70,484 | 37.0% | 23,674 |
| Atlanta | 49.5% | 49,827 | 47.9% | 17,255 |
| Boston | 16.9% | 30,495 | 15.6% | 10,765 |
| San Francisco | 23.3% | 39,496 | 19.5% | 25,776 |
| Detroit | 43.4% | 57,396 | 41.4% | 17,197 |
| Riverside, Calif. | 43.8% | 58,417 | 34.5% | 62,407 |
| Phoenix | 40.4% | 135,099 | 34.8% | 43,044 |
| Seattle | 33.5% | 32,457 | 29.9% | 23,441 |
| Minneapolis-St. Paul, Minn. | 34.6% | 29,518 | 32.8% | 12,808 |
| San Diego | 28.3% | 31,894 | 23.4% | 22,788 |
| Tampa, Fla. | 41.5% | 34,359 | 40.0% | 7,775 |
| St. Louis | 26.9% | 23,348 | 27.0% | N/A |
| Baltimore | 27.7% | 11,529 | 26.5% | 6,265 |
| Denver | 20.0% | 53,848 | 18.0% | 10,509 |
| Pittsburgh | 14.0% | 8,767 | 13.2% | 3,403 |
| Portland, Ore. | 28.0% | 26,355 | 24.7% | 13,799 |
| Sacramento, Calif. | 41.7% | 32,195 | 32.9% | 33,356 |
| Orlando, Fla. | 45.3% | 32,650 | 43.3% | 7,286 |
| Cincinnati | 27.2% | 16,034 | 26.8% | 1,830 |
| Cleveland | 29.8% | 13,818 | 29.1% | 2,965 |
| Las Vegas | 59.2% | 36,876 | 56.7% | 8,435 |
| San Jose | 16.1% | 17,330 | 13.2% | 8,062 |
| Columbus | 28.8% | 19,905 | 27.7% | 3,620 |
| Charlotte | 33.0% | 13,513 | 32.9% | 325 |
Zillow® Negative Equity Report for 4th quarter 2012
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