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‘Seriously Underwater’ Home Mortgages Tick Up Across the US
Posted on 5/9/24 at 9:45 am
Posted on 5/9/24 at 9:45 am
archive today
Roughly one in 37 homes are now considered seriously underwater in the US and that share is much higher across a swath of southern states, according to data out Thursday.
Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year. That’s up from 2.6% in the previous quarter, according to the first-quarter 2024 US Home Equity & Underwater Report from ATTOM, a real estate data firm.
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
Mortgages can generally become seriously underwater when someone overpays for a home, or when it is purchased with a small downpayment that doesn’t provide a sufficient buffer if the property falls in value.
During the pandemic, government stimulus and rising property prices were a huge boon to homeowners, but higher interest rates meant to curb inflation may be finally be helping to cool the housing market.
Several southern states saw shares of seriously underwater homes grow more than the rest of the country. Kentucky’s share jumped to 8.3% in the first few months of the year from 6.3% in the previous quarter. West Virginia’s share rose to 5.4% from 4.4% over the same period, while Oklahoma climbed to 6.1% from 5.5%, and Arkansas went up to 5.7% from 5.2%.
The states with the biggest increase in number of seriously underwater homes are also in the south. Kentucky is in first place with a year-over-year jump of more than 20,500 homes - nearly twice as many as second-place Mississippi and Oklahoma, coming in third.
Among metro areas with a population of at least 500,000, Baton Rouge, La. had the largest share of seriously underwater mortgages in the first quarter, with 13.4%. Neighboring New Orleans came in second with 7.3%, followed by Jackson, Miss., and Little Rock, Ark., with 6.5% and 6%, respectively. Syracuse, NY came in fifth, with 5.6% of homes seriously underwater.
Roughly one in 37 homes are now considered seriously underwater in the US and that share is much higher across a swath of southern states, according to data out Thursday.
Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year. That’s up from 2.6% in the previous quarter, according to the first-quarter 2024 US Home Equity & Underwater Report from ATTOM, a real estate data firm.
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
Mortgages can generally become seriously underwater when someone overpays for a home, or when it is purchased with a small downpayment that doesn’t provide a sufficient buffer if the property falls in value.
During the pandemic, government stimulus and rising property prices were a huge boon to homeowners, but higher interest rates meant to curb inflation may be finally be helping to cool the housing market.
Several southern states saw shares of seriously underwater homes grow more than the rest of the country. Kentucky’s share jumped to 8.3% in the first few months of the year from 6.3% in the previous quarter. West Virginia’s share rose to 5.4% from 4.4% over the same period, while Oklahoma climbed to 6.1% from 5.5%, and Arkansas went up to 5.7% from 5.2%.
The states with the biggest increase in number of seriously underwater homes are also in the south. Kentucky is in first place with a year-over-year jump of more than 20,500 homes - nearly twice as many as second-place Mississippi and Oklahoma, coming in third.
Among metro areas with a population of at least 500,000, Baton Rouge, La. had the largest share of seriously underwater mortgages in the first quarter, with 13.4%. Neighboring New Orleans came in second with 7.3%, followed by Jackson, Miss., and Little Rock, Ark., with 6.5% and 6%, respectively. Syracuse, NY came in fifth, with 5.6% of homes seriously underwater.
24
Posted on 5/9/24 at 9:46 am to Areddishfish
Good luck selling those houses at all time high prices!!
Posted on 5/9/24 at 9:47 am to Areddishfish
Who gets the first bailout?
Posted on 5/9/24 at 9:47 am to Areddishfish
I thought this was a Stout thread
Posted on 5/9/24 at 9:50 am to bad93ex
quote:
Who gets the first bailout?
Looks like Louisiana will be first in line clamoring for fed dollars like normal.
quote:
Baton Rouge, La. had the largest share of seriously underwater mortgages in the first quarter, with 13.4%. Neighboring New Orleans came in second with 7.3%
This post was edited on 5/9/24 at 9:52 am
Posted on 5/9/24 at 9:54 am to GEAUXT
quote:
I thought this was a Stout thread
Posted on 5/9/24 at 9:55 am to Areddishfish
quote:
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
Woah
Posted on 5/9/24 at 9:57 am to Areddishfish
2008 all over again.
Posted on 5/9/24 at 10:06 am to Areddishfish
Time for those cash flush west Texas boys to swoop in and save the day.
Posted on 5/9/24 at 10:06 am to F1y0n7h3W4LL
No surprise that they people who bought starting mid to late 2020 to last year are underwater now that prices aren't (as) sky high.
Same is going to be true for car loans as well.
Same is going to be true for car loans as well.
Posted on 5/9/24 at 10:07 am to Areddishfish
wait until they remove St George
Posted on 5/9/24 at 10:11 am to JohnnyKilroy
quote:
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
2020 bailed a lot of people out it seems
here is the report from 2019
quote:
Highest seriously underwater share in Louisiana, Mississippi, Arkansas, West Virginia
States with the highest share of seriously underwater properties were Louisiana (20.7 percent); Mississippi (17.1 percent); Arkansas (16.3 percent); West Virginia (16.2 percent); and Illinois (16.2 percent).
Among 99 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (21.3 percent); Scranton, Pennsylvania (20.0 percent); Youngstown, Ohio (19.2 percent); Toledo, Ohio (19.2 percent); and New Orleans, Louisiana (17.8 percent).
LINK /
Posted on 5/9/24 at 10:14 am to Areddishfish
Used golf carts about to be cheap.
Posted on 5/9/24 at 10:15 am to Areddishfish
quote:
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
The OT baws read the headline but forget to read the article.
Posted on 5/9/24 at 10:17 am to Areddishfish
quote:
homes carried loan balances at least 25% more than their market value
I wouldn't be able to sleep at night
Posted on 5/9/24 at 10:18 am to GEAUXT
quote:
I thought this was a Stout thread
He does have a talent for starting the gloomiest threads.
Posted on 5/9/24 at 10:19 am to Areddishfish
The waters are rising
The dams gonna break soon
Half of americans live check to check and another half can’t afford a $1,000 emergency
Can’t sell their underwater home. Can’t make car payments or rent or buy groceries .
The dams gonna break soon
Half of americans live check to check and another half can’t afford a $1,000 emergency
Can’t sell their underwater home. Can’t make car payments or rent or buy groceries .
Posted on 5/9/24 at 10:20 am to Antonio Moss
Got lucky with 2.5% in 2020. My home will always be viewed as a home and not an asset. $1100/month when apartments are $1600/month. Yikes
Posted on 5/9/24 at 10:21 am to Areddishfish
Of course they are..
Overpriced homes coupled with 7+% interest rates.
Overpriced homes coupled with 7+% interest rates.
Posted on 5/9/24 at 10:22 am to JohnnyKilroy
quote:
While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.
Woah
The problem is how many of these people who got out from under those mortgages are now being overwhelmed by property tax and insurance increases?
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