In the Boise metro area, 34 percent of homes are now worth less than what is owed on the mortgage.
Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.
The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.
“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” said Mark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”
If you are having trouble making your house payment or want to know if your home is “underwater” please go to www.homeswithjosh.com or idshortsale.com
Source: IBR