Real Estate News

Zillow: Most underwater mortgage holders owe 20% more than value of homes

More than half of underwater homeowners in the Sacramento area owe at least 20 percent more than the value of their homes, according to Seattle-based real estate tracker Zillow.

Zillow said 53.7 percent of underwater homeowners in the region are in that situation, even as negative equity numbers have fallen.

In this year’s first quarter, Zillow said negative equity among homeowners in the Sacramento area was 14.1 percent, down from 14.8 percent in the fourth quarter of 2014 and 20 percent in last year’s opening quarter. Cumulative equity at the close of the first quarter of 2015 was $5.5 billion.

The company projected that negative equity will fall to at least 11.5 percent in the first quarter of 2016.

Zillow said 30.4 percent of area homeowners with a mortgage are “effectively underwater, unable to sell their homes for enough profit to comfortably meet expenses related to listing a home and purchasing a new one.”