Boise metro area above average in terms of negative equity

Below you will find a recent article from the Idaho Business Review which discusses homes “under water” within our community.  In my opinion, the  Boise Metro area is above the national average for negative equity because of  the dramatic increase in market pricing during the “boom time”.   Hence why the “correction” has been so dramatic, as well. 

Negative equity soars in Boise metro area

In the Boise metro area, 34 percent of homes are now worth less than what is owed on the residence.

Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.

The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” saidMark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”

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