As of the end of the second quarter of this year, there are 90,937 underwater St Louis homeowners, according to a report just released by Corelogic. This represents a slight increase from the prior quarter when there were 90,196 underwater St Louis homeowners and a decrease of almost 9 percent (8.8 percent) from the 2nd quarter of 2011 when St Louis underwater homeowners numbered almost 100,000 (99,792). One is said to be “underwater” on their mortgage when they owe more on their mortgage than their home is currently worth, which is also referred to as having “negative equity”.
Playing a large part in this reduction of homeowners with negative equity has been a combination of both an increasing number of foreclosures (which thereby removes the underwater loan from existence) and increasing home prices. As you can see by the chart I produced below, St Louis home prices have been increasing in the past year. The current price trend shown on the chart indicates an upward trend that, if continues, will help pull more underwater borrowers back above water.
Source: MORE, Realtors
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