Over 40 Percent Of Homeowners With Mortgage In 3 North St Louis Zip Codes Are Underwater

During the second quarter of 2020, 45.5% of the homeowners with a mortgage within the 63115 zip code, 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, the north county zip codes of 63137 and 63136 were not far behind at 45.1% and 41.3%, respectively.  Of the 10 St Louis-area zip codes with the highest rate of underwater homeowners, 7 were in St Louis County and 3 in the City of St Louis.

St Louis Underwater (Negative-Equity) Homeowners By Zip Code – Top 10 HighestSt Louis Underwater (Negative-Equity) Homeowners By Zip Code - Top 10 Highest

(Click on table for live, complete list)

 

Percentage of Underwater Homeowners In St Louis Drops To Lowest Level in Over 7 Years

During the second quarter of 2020, 9.8% 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 is the lowest level of St Louis homeowners that are seriously underwater since 2013 when this data was first tracked.  In spite of financial difficulties and hardships that people may be suffering as a result of COVID-19, the downward trend of underwater homeowners in St Louis that began during the 3rd quarter of 2019 continues.

St Louis Underwater (Negative-Equity) Homeowners

(Click on table for live, complete data from 2013-Present)
St Louis Underwater (Negative-Equity) Homeowners

St Louis Underwater Homeowners Falls To Lowest Percentage In Over 6 Years

During the fourth quarter of 2019, 10.2% 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 is the lowest level of St Louis homeowners that are seriously underwater since 2013 when this data was first tracked.  This continues the trend that began in the price quarter with the then lowest rate at 10.5%.

St Louis Underwater (Negative-Equity) Homeowners

(Click on table for live, complete data from 2013-Present)
St Louis Underwater (Negative-Equity) Homeowners

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

Underwater Homeowners In St Louis Drops To Lowest Rate In Two Years

During the fourth quarter of 2018, 14.2% of the homeowners in St Louis with a mortgage, were underwater on their mortgage, meaning they were in a negative-equity postion, according to data just released by ATTOM Data Research.  As the table below shows, this is the lowest rate since the 4th quarter of 2017 when the St Louis undertwater homeowner rate was at 13.8%.  On a national level, just 8.8% of homeowners with a mortgage are underwater which puts the St Louis rate at 161.5% of the US rate.

St Louis Underwater (Negative-Equity) Homeowners – 2013-2018

St Louis Underwater (Negative-Equity) Homeowners - 2013-2018

Number of Underwater St Louis Homeowners Falls To Lowest Level Since Last Year

During the 3rd quarter of this year, 14.4% of the homeowners in St Louis with a mortgage were “seriously underwater”, meaning they owe at least 25 percent more than the estimated value of their home, according to a report just released by ATTOM Data Solutions. This is the lowest rate this year, down from 15.6% in the 2nd quarter and down from 14.7% in the first quarter of 2018.  For the last quarter of 2017, St Louis homeowners that were seriously underwater had fallen to 13.8%.

Kansas City and Chicago have fared better over the past 5 years…

As the table below illustrates, our neighbors to the west and northeast, Kansas City, MO and Chicago, IL, have both seen a greater margin of improvement in their underwater homeowners over the past 5 years.  Kansas City went from 23.1% of their homeowners with a mortgage being seriously underwater in the 3rd quarter of 2013 to 9.8% during the 3rd quarter of this year, a reduction of 58% in the rate of underwater homeowners.  Chicago, during the same period, went from 35.8% to 13.2%, a reduction of 68%. Meanwhile, here in St Louis, the rate went from 25.4% to 14.4%, a reduction of 40%.

St Louis Seriously Underwater Homeowners – 3rd Quarter 2018

St Louis Seriously Underwater Homeowners - 3rd Quarter 2018

 

 

Number of Seriously Underwater St Louis Homeowners Down Fifty-Percent From 4 Years Ago

The percentage of homeowners with a mortgage in the St Louis MSA that were seriously underwater in the last quarter of 2017 was 13.8%, about half the rate from 4 years earlier, according to data just released by ATTOM Data Solutions.  For this report, a homeowner is considered “seriously underwater” when the total of their home mortgage(s) is equal to, or greater than, 125% of their home’s current value.

Also shown on the table below is the percentage of equity-rich homewners in the St Louis MSA.  An “equity-rich” homeowner is at the other end of the spectrum from an underwater homeowner with their mortgage total being 50% of less than the current value of their home.

You can click the table below to go to the complete information showing the data for the 5-counties that make up the St Louis core market.

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St Louis MSA Underwater Homeowners & Equity-Rich Homeowners

(Click on the table to be taken to the complete report by county)

St Louis MSA Underwater Homeowners & Equity-Rich Homeowners

 

 

Number Of St Louis Homeowners In Negative Equity Position Declines Nearly 20 Percent In Past Year

In the St Louis area during the 2nd quarter of this year, there were 30,407 (5.4 percent of all residential properties) with negative equity, or underwater, according to a report just released by Corelogic.  This is a decline of nearly 20 percent (19.89%) from a year ago when there were 37,581 St Louis homeowners in a negative equity position.

In addition to the homeowners that are underwater, or in a negative equity position, during the 2nd quarter of 2017 there were 9.660 homeowners, or another 1.7 percent of all homeowners with a mortgage, that were in a “near-negative” equity postion (they have less than 5% equity), according to the report.

Negative Equity and Underwater Defined
Two terms that we didn’t hear much prior to the real estate market bubble burst in 2008 were negative equity and underwater. However, after the bubble burst, we heard those terms a lot and now, even 9 years later, still are. So, what is considered “negative equity” or being “underwater” for a homeowner? Basically, in a nutshell, it means the homeowners current home loan balance is greater than the current value of their home leaving them in a position where they cannot sell their homes without “bringing money to the table.” For homeowners in a “near negative-equity position” they are better off since they have some equity (5% or less) but, since the cost of selling a home and relocating typically exceeds that amount of equity, those homeowners could face the plight of having to bring money to the closing as well, making it hard to sell for many homeowners in this position.

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Over 1 in 4 St Louis Homeowners With A Mortgage Are Underwater

St Louis homeowners underwaterSlightly over 1 of every 4 (26.4 percent) St Louis homeowners with a mortgage are underwater or, in other words, in a negative equity position owing more on their mortgage than their home is currently worth, according to a report by Zillow.  This is slightly higher than the national rate of 25.4 percent and, unfortunately, is predicted by Zillow to increase in the coming months to about 26.7 percent by January 2014.

In addition to the St Louis homeowners that are underwater, the report indicates that another 20.7 percent of the St Louis homeowners with a mortgage have less than 20 percent equity in their homes, putting them at risk of going into a negative equity position if prices fall.

Things are still much better here in St Louis than in many places though.  For example, in Las Vegas, over 50 percent  (54.3%) of the homeowners there with a mortgage are underwater.  The complete table listing all metro areas covered in the report is below:

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