Negative equity hits home for US householders
According to a recent report more than 30 per cent of USA mortgage account holders are living with high levels of negative equity – a slight increase from the last quarter of 2011.
The Zillow Negative Equity Report tracked first quarter results that shows in total underwater home owners owed more than $1 trillion more than their properties are worth in total across the US. However the figure is less than the amount recorded a year ago.
Economists are disappointed at the still high level of underwater mortgages but believe the majority of homeowners in this position are up to date with monthly payments and suggest that around ten per cent are more than 90 days delinquent.
Negative equity as a whole remains a concern that will hamper recovery but as house values increase the level of underwater instances will decrease.
The highest percentage of USA real estate owners with negative equity is found in Nevada where more than two thirds of all home owners with a mortgage live in a property that is worth less than their purchase price.