AgentIndustry News

How low can you go? Underwater homeowners want to know

Zillow report finds ‘volatile prices, limited inventory, tepid demand, elevated foreclosures — and a whole lot of frustration’

More than 4 million homeowners owe their mortgage lender at least 20 percent more than their homes are actually worth, according to the startling results from Zillow’s first-quarter Negative Equity Report. Although home values are forecast to continue rising, and the number of delinquent loans are dropping, this progress is having little impact on the national negative equity rate, according to the report. And although spring and summer are always the busiest buying and selling seasons -- and there is currently high demand for homes in the bottom third of the market -- a disproportionate number of homeowners can’t afford to sell to buyers looking for homes in their price range, the report concluded. The national negative equity rate dropped to 15.4 percent in the first quarter. A year ago, the rate was 18.8 percent. The rate of negative equity improved in all of the 35 largest housing markets in the first quarter of 2015, a sign that, metro by metro and home by home...