CoreLogic suggests an alternate measure of homeownership in its recent negative equity report: An alternative definition of homeownership is to exclude owners with negative equity, which nets the effective homeownership rate (Figure 5). Adjusting for severe negative equity of 25 percent or more reveals that the effective homeownership rate as of Q3 was 62.4 percent [...]
Tag Archives | Negative equity
Chicago 19th of 50 regions for negative equity
Over a fifth of Chicago metro mortgages have negative equity, according to CoreLogic’s Q3 negative equity report. We rank 19th out of 50 surveyed metro areas with 22 percent of loans “underwater.” Our area’s total loan to value ratio–including all properties with a mortgage–is 71%, which is calculated by dividing the total outstanding loan balances [...]
Reduced mobility bodes ill for economic recovery
It’s a lot harder to move if you have negative equity in your home, a new study by CoreLogic confirms. The chart below shows that the number of sales in zip codes with high levels of negative equity have fallen more than twice as fast as those in neighborhoods with low levels of negative equity: [...]
Negative equity in prime earning years
Pew Research Center recently released a chart detailing the demographics of the 21 percent of mortgage holders who are underwater: To summarize: If you’re underwater, you’re more likely to be: Hispanic than white or black alone Unemployed than employed Living in the West Age 30-49 rather than other cohorts Earning less than $30,000 per year [...]
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