A new study from First Ameican CoreLogic estimates that 16 percent of Bellingham properties (or 6,619) are in negative equity (owing more than the property is worth) as of June 30.
Also, 21 percent of Bellingham properties are either near negative equity or already there.
While those sound like ugly statistics, it’s actually better than the U.S. avearge. According to the study, 32 percent, or 15.2 million mortgages, are in a negative equity position. That’s slightly lower than the end of March, which reflects the recent flattening of monthly home price changes, according to the report.
No wonder people continue to curtail spending. They can’t be feeling confident about the economy if: 1. They are unsure about their jobs; and 2. Their owe more on their home than what it’s worth.
I guess I’d wanna know,
How much less?
Numbers are funny that way.
I owe $208,000 but homes just like mine are selling for $207,000.
I’m Underwater!
Oh No!!!
But if homes just like mine are only fetching $175,000,
then I’m maybe,
truly anxious about paying my mortgage, even though I don’t intend to sell.
The bigger question is – what kind of economic damage is done by paying more for something that it’s worth?
Oops, than it’s worth, that is.
Hi Citizen,
I did a quick random check of some homes on Zillow.com, looking around in the $250,000-$300,000 range, and found folks who bought them were down around $5,000 from what they paid a couple of years ago. I have no idea if they put 20 percent down or paid for all of it through a loan, so I don’t know if they are underwater. If they bought a home with zero down, it looks like in my unscientific check that they would only be down a few thousand at this point.