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

23,000 Fewer St Louis Homeowners Underwater at end of 2012

dennis-norman-realtorThere 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. Continue reading “23,000 Fewer St Louis Homeowners Underwater at end of 2012

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.