Underwater Homeowners in the Twin Cities Now 60 Percent Below Peak
Good news for the Twin Cities housing market. The number of homeowners underwater on their home mortgage, meaning they owe more than their home is valued at, dropped below the national average according to the most recent report by Zillow. At the time of the report there were 107,785 homeowners, which is equivalent to 15.6 percent of all homeowners with a mortgage that were considered underwater on their home mortgage. That number is down from 21.1 percent during the third quarter of last year, and down a total of 60.1 percent from its peak. Across the country those homeowners underwater fell by 16.9 percent.
Stan Humphries, chief economist at Zillow, had this to say about the report: "Looking at negative equity helps us understand so many of the currently out-of-whack dynamics in the housing market, including low inventory, rapid home value appreciation and weak sales volumes. None of these problems will be solved overnight, in large part because negative equity will likely be a part of the housing market for years, and easily into the next decade in some hard-hit areas. But we’re moving in the right direction, and time will heal all wounds.”
The report showed that homeowners that held what was considered to be less-expensive homes were more likely to be underwater on their homes than those homeowners who have more expensive homes.
If you are looking to buy or sell a home this winter contact me. Our group specializes in Eden Prairie Real Estate,Chanhassen Real Estate, Chaska Real Estate, Lake Minnetonka Real Estate,Edina Real Estate and West Bloomington Real Estate.
Brace Helgeson Coldwell Banker Burnet
Licensed in Minnesota/Lic # 92065