Zillow Reports "Underwater" Households Is Down, But Remains "Elevated"

Zillow reported that there are nearly 10 million US households that have homes that are worth less than their mortgage (i.e., underwater).  Zillow reports about 18.8% of US homeowners with a mortgage is "underwater" in 1Q:14; this compares with 19.4% at the end of 1Q:13.

Another issue for the market is about another 10 million US households have 20% or less equity in their homes, according to Zillow.  A report in the Wall Street Journal (WSJ) explains with about 40% of US homeowners with a mortgage "underwater" or lacking enough equity to sell their home, it might put a damper on the US housing market.

The WSJ article goes on to report that many of the less expensive homes in the US, the lower third of the spectrum, is more likely to be "underwater."  The theory is that this is inhibiting those who use the equity in the home for expenses to "trade up" (i.e., get a larger home).  This is causing the first time homebuyer to be shut out as they tend to buy lower priced homes as a starter home and then move up. 

There still seems to be more demand than current inventory levels can supply in the South Florida market.  As such, prices continue to climb in the area with much of the sales being cash deals.  However, I am working with buyers now who are getting mortgages and buying homes.  I also work with first time homebuyers and help them through the purchase process.

Call me today for more information.

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

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