This was printed from Phoenix Business Journal
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This was printed from Phoenix Business Journal
Slightly more than half of Phoenix-area homeowners with mortgages were underwater in the first quarter of 2012.
Slightly more than half of Phoenix-area homeowners with mortgages were underwater in the first quarter of 2012, generating roughly $39 billion in total negative equity, according to a report released Thursday from Zillow Inc.
Many of those metro Phoenix homeowners aren’t so deeply underwater, the report said, with about 23 percent owing anywhere between 1 and 20 percent of the value of their homes.
However, a greater number were much worse off -- about 27 percent owed double what their home is worth in the first quarter, the report said. Another 9 percent were at least 90 days delinquent, but the study emphasized that being underwater does not necessarily mean foreclosure is inevitable.
Among the 30 or so markets nationwide the Zillow study examined, Phoenix’s underwater home rate was second highest, although it fared better than the whopping 71 percent Las Vegas had that same quarter.
The overall underwater home rates in Arizona was 52.3 percent in the first quarter and 66.9 percent in Nevada. They were the top two sates in the country for the dubious honor.
Nationwide, nearly one third of mortgage holders, or 15.7 million, were underwater, according to the report. That brings the nation’s total negative equity to about $1.2 trillion in the first quarter, which is a miniscule improvement from the same period last year.
Zillow’s negative equity study puts somewhat of a damper on other reports that show Phoenix home values have continued on an upswing so far this year.
Most recently, the FNC Residential Price Index released figures on Wednesday that showed Valley home prices were 1.4 percent higher in March than the month prior. Nationally, the FNC reported month-over-month home values rose by an average of one-half percent.
Kristena Hansen covers residential and commercial real estate.
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