The Number Of Underwater Homeowners In St Louis Increases Slightly

During the first quarter of 2019, 14.5% of the homeowners in St Louis with a mortgage, were underwater on their mortgage, meaning they were in a negative-equity position, according to data just released by ATTOM Data Research.  As the table below shows, this slight increase follows a decline in the rate for the two prior quarters.  The St Louis negative-equity rate is about one and a half times that for the U.S. as a whole.

St Louis Underwater (Negative-Equity) Homeowners – 2013-2019

St Louis Underwater (Negative-Equity) Homeowners - 2013-2019

Percentage of St Louis Homeowners With Negative Equity Grows Slightly

The number of homeowners that are “seriously underwater“, or in a negative-equity position, increased during the 2nd quarter of this year, according to a report just released by Attom Data Solutions.   During the 2nd quarter of 2106, 17.8% of the homeowners, with a mortgage, in the St Louis MSA were in a negative equity position, up from 16.6% the quarter before and up just slightly from 17.4% during the 2nd quarter of 2015.

To be included in this report, a homeowner has to owe 125% of the current value of their home, so these people are definitely “seriously underwater”.  Obviously, there are many more people that are in a negative equity position, meaning they owe anywhere from 100% to 125% of the value of they home in mortgages.

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St Louis Negative Equity or Underwater Homeowners

Help For Underwater Homeowners – One-time principal reduction plan

In mid-April the Federal Housing Finance Agency (FHFA) announced a new program aimed to help homeowners with a Fannie Mae or Freddie Mac loan that are seriously underwater on equity, meaning that their mortgage balance is at least 115 percent of the current value of their home.  This new principal reduction modification program offers, to those that qualify, a one-time reduction in the balance of their mortgage to bring them out of a negative equity position.

Below is an outline of the program details as well as link to Principal Reduction Fact Sheet:

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St Louis Homeowners With Negative Equity Declines Over Eighteen Percent In Past Year

In the St Louis area there were 44,674 (7.9 percent of all residential properties) with negative equity, or underwater, during the 4th quarter of 2015, according to a report just released by Corelogic.  This is a decline of 18.6 percent from the year before when there were 54,604 St Louis homeowners in a negative equity position (9.7 percent of all residential properties) .

Wha is negative equity or being “underwater’

For homeowners considered to be in a negative equity, or underwater, position, means that the current balance of their home mortgage exceeds the current value of their home making it impossible to sell their home without bringing money to the closing table.  This takes many would-be sellers out of the market as, even though they may like to sell their home and buy another, they just don’t have the cash available to cover the shortfall on their sale as well as cover downpayment and closing costs on a new home.  Hence, one of the reasons for the low inventory of homes for sale in many parts of the St Louis area.

Near negative equity can prevent owners from selling as well…

In addition to the 44,674 St Louis homeowners that are currently in a negative equity position, there are an additional 16,720 homeowners (3.0 percent of the total in St Louis) that are in a “near-negative equity” position meaning that, while they are in a positive equity position, they are at risk of going into a negative equity position of home prices fall and most likely do not have enough equity in their home to cover the typical costs of a home sale and move to another home.

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Seven Percent Of St Louis Home Mortgages Are Underwater

As of the end of the 3rd quarter this year, 7 percent of all St Louis homeowners with a mortgage were in a negative equity position meaning their current mortgage balance exceeds the current value of their home, according to a report just released by Corelogic.  In addition, another 4.6 percent of St Louis homeowners with a mortgage are in a near-negative equity position putting a total of 11.6 percent of St Louis homeowners with a mortgage in a position where it would be hard for them to consider selling their home, without bringing money to closing.

For the state of Missouri, the negative equity rates is 6.3 percent and nationally it is 8.1 percent.

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Underwater Homeowners in St Louis Continues To Decline

There were 123,546 St Louis homeowners with negative equity, or in a seriously underwater condition on their mortgage meaning they owe more than the current value of their home, in the St Louis MSA during the 2nd quarter of 2015 according to the most recent data by RealtyTrac.  This works out to 17 percent of all St Louis metro area homeowners with a mortgage being underwater on their mortgage which is an improvement from 21 percent just 2 quarters prior.

As the table below shows, for the immediate St Louis, MO area, the city of St Louis had the highest rate of underwater homeowners at 1 out of every 4 homeowners with a mortgage and St Charles county had the lowest percentage at 7%.

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St Louis Homeowners with Negative Equity Improves by Over 20 Percent in 4th Quarter of 2014

There were 119,936 St Louis homeowners with negative equity, or in a seriously underwater condition on their mortgage meaning they owe more than the current value of their home, in the St Louis MSA during the 4th quarter of 2014 which is a 21% improvement from the prior quarter when there were 152,025 St Louis homeowners seriously underwater, according to a report just released today by RealtyTrac.

As the table below shows, for the immediate St Louis, MO area, the city and county of St Louis had the highest percentage of underwater homeowners at 22% and St Charles county had the lowest percentage at 6%.

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Number of St Louis Homeowners with Negative Equity Rises At End of 2013

The number of St Louis homeowners with negative equity (also referred to as “underwater” homeowners) increased in the 4th quarter of 2013 to 11.6% of all the St Louis homeowners with a mortgage on their home, an increase from 11.3% in the prior quarter, according to a newly released report from CoreLogic.  Another 4.4% of the home owners with a mortgage were in a “near negative equity” position, up from 4.3% in the 3rd quarter.

Nationally, 13.3 percent of homeowners with a mortgage were in a negative equity position during the 4th quarter of 2013, the same as the quarter before.

St Louis Homeowners With Negative Equity Drops By One-Third In 2nd Quarter

St Louis Negative Equity - Dennis Norman

There were 59,709 St Louis homeowners with negative equity in the 2nd quarter of 2013, a 33 percent decline from the first quarter of this year when there were 89,690, according to a report released by CoreLogic.  During the 2nd quarter just over 1 in 10 (10.6%) of all St Louis homeowners with a mortgage owed more on their home then the current value thereby putting them underwater, or in a negative equity position.  The quarter before, about one in 6 (16%) St Louis homeowners with a mortgage were underwater.

 

Number of homeowners with negative equity falls by almost 50 percent

negative equityThe number homeowners in a negative equity position (owing more on their mortgage than the current value of their home) during the first quarter of this year fell to just 7.3 million homeowners in the U.S. or less than 15 percent of all homeowners with a mortgage, according to the most recent data from Lenders Processing Services (LPS).  This represents a decline of almost 50 percent in the number of negative equity homeowners from a year ago.

More good news in the LPS data was the fact that the number of homeowners that are delinquent on their mortgages fell again in May to a rate of 6.08 percent of homeowners with a mortgage, marking a decline of more than 15 percent since the end of 2012, the largest year-to-date decline in the mortgage delinquency rate since 2002.

Total U.S. loan delinquency rate: 6.08%
Month-over-month change in delinquency rate: -2.11%
Total U.S. foreclosure presale inventory rate: 3.05%
Month-over-month change in foreclosure pre-sale inventory rate: -3.91%
States with highest percentage of non-current* loans: FL, NJ, MS, NV, NY
States with the lowest percentage of non-current* loans: MT, AK, WY, SD, ND

Source: LPS

The Number of Homeowners With Negative Equity Continues to Decline

dennis-norman-realtorRising home prices helped 100,000 homeowners in the U.S. crawl out of a negative equity position during the 3rd quarter of 2012, according to a report just released by CoreLogic®.  During the first nine months of 2012, there were a total of 1.4 million homeowners that found themselves moving from a negative equity position on their homes to a positive equity position.  In spite of this vast improvement, twenty two percent of homeowners in the U.S. with a mortgage owe more on their homes than they are currently worth. Continue reading “The Number of Homeowners With Negative Equity Continues to Decline

Number of St Louis Homeowners with Negative Equity Drops Almost 9 Percent in Past Year

dennis-norman-st-louis-realtor-

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. Continue reading “Number of St Louis Homeowners with Negative Equity Drops Almost 9 Percent in Past Year

Underwater St Louis homeowners on the rise

dennis-norman-st-louis-underwater-mortgagesA report just released by CoreLogic shows that, at the end of fourth quarter 2011, there were 107,183 underwater St. Louis homeowners, or, to put it another way, St Louis homeowners with negative equity accounted for 18.8 percent of all St Louis homeowners with a mortgage.  This is up from 17.1 percent at the end of the third quarter of 2011.  In addition,  6.1 percent, or 34,639 St Louis homeowners, were in near negative equity for fourth quarter 2011 compared to 5.9 percent, or 33,694, in third quarter 2011.

Housing market not out of the woods yet

Dennis Norman St Louis RealtorMark Fleming, Ph.D., Chief Economist for CoreLogic, in a presentation yesterday, said the housing market is not out of the woods yet as the potential of a double-dip in our economy increases and as 30 to 40 percent of economists feel there is a chance of another recession. The economy’s “stall speed” was another issue Fleming said was a concern, describing it as similar to the stall speed of an airplane; that speed at which is still fast enough for the plane to be flying, but just on the edge of stalling and no longer able to maintain flight. Fleming said, for the economy, a 1 percent growth rate is historically the “stall” point and that is right about where we are presently. Continue reading “Housing market not out of the woods yet

St. Louis homeowners with negative equity increases slightly in 2nd quarter

Dennis Norman St Louis

A report released today by CoreLogic shows that 17.30 percent (99,792) of all St. Louis homeowners with a mortgage were in a negative equity position in the second quarter of 2011, up slightly from 17.10 percent the prior quarter. Negative equity is also referred to as being “underwater” or “upside down” and refers to homeowners that owe more on their mortgages than the current value of their home. Continue reading “St. Louis homeowners with negative equity increases slightly in 2nd quarter

St Louis Homeowners with Negative Equity Increases Slightly in First Quarter of 2011

Dennis Norman St Louis

A report released today by CoreLogic shows that 17.10 percent (97,772) of all St. Louis homeowners with a mortgage were in a negative equity position in the first quarter of 2011, up slightly from 17.0 percent the prior quarter.  Negative equity is also referred to as being “underwater” or “upside down” and refers to homeowners that owe more on their mortgages than the current value of their home. Continue reading “St Louis Homeowners with Negative Equity Increases Slightly in First Quarter of 2011

Report Shows Little Improvement in Underwater Homeowners

Dennis Norman St Louis

Negative equity is the dominant factor driving the real estate market according to CoreLogic in it’s “U.S. Housing and Market Trends” report that was released today. According to the report, as of the 4th quarter of 2010, over 11 million (23 percent) of U.S. homeowners with a mortgage were in a negative equity position, meaning they owe more on their mortgages than the current value of their home. Continue reading “Report Shows Little Improvement in Underwater Homeowners

Homeowner Negative Equity Declines for Third Straight Quarter

Dennis Norman St Louis

A report released this morning by CoreLogic shows negative equity declined in third quarter of 2010 for residential properties, marking the third-consecutive quarterly decline. The CoreLogic reports that 10.8 million, or 22.5 percent, of all residential properties with mortgages were in negative equity at the end of the third quarter of 2010, down from 11.0 million and 23 percent in the second quarter. While the decline is good news, the bad news is that the report states the decline is “due primarily to foreclosures of severely negative equity properties rather than an increase in home values.” Continue reading “Homeowner Negative Equity Declines for Third Straight Quarter

Homeowners with negative equity declines for second consecutive quarter

Dennis Norman

After a couple of days of writing about bad reports on the housing market (existing home sales and new home sales to name two) I’m excited that I actually get to write something today that is positive!  According to newly released data from CoreLogic, the percentage of homeowners in the U.S. with negative equity in their homes declined slightly at the end of the second quarter of 2010 making it the second consecutive month of declines.

According to the CoreLogic report, 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010.  Unfortunately as much I would like to say this was from home price appreciation, unfortunately it appears to have been driven primarily by foreclosures removing some of the homes with negative equity from the scene.  Continue reading “Homeowners with negative equity declines for second consecutive quarter

Almost thirty percent of mortgages in St. Louis are underwater

Dennis Norman
Dennis Norman

According to a report issued by First American CoreLogicmore than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, are in a negative equity position. In addition, according to the CoreLogic report, there are an additional 2.5 million mortgaged properties that are approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage.

firstamerican corelogic
The numbers for St. Louis are a little better than the U.S. numbers. In St. Louis, 170,871, or 29.50 percent of all properties with a mortgage, are in negative equity. A total of 208,259 mortgages, or 35.95 percent, are in near negative equity or negative equity.
The total property value of the property in St. Louis that is at risk of default is over $26.5 billion. By comparison in Chicago there is $134 billion of property at risk of default and $310 billion in Los Angeles.
Negative equity, often referred to as “underwater” or “upside down”, means the borrower owes more on their mortgage than the home is worth. Near negative equity is when mortgages are within five percent of being in a negative equity position. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.