The Zillow Negative Equity Report showed that 31.4 percent of mortgage holders were “underwater,” owing $1.2 trillion more than their homes were worth.
Nevada had the highest percentage of negative equity, with 66.9 percent, and among the nation’s largest metro areas, Las Vegas had the highest, 71 percent.
“While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners,” said Stan Humphries, Zillow’s chief economist. “As home values slowly increase and these homeowners continue to pay down their principal, they will surface again.”
The report, which debuted this week with new methodology, noted that 12.4 percent of all homeowners with a mortgage owed between 1 percent and 20 percent more than their home was worth. An additional 6.6 percent of all homeowners with a mortgage owed between 21 percent and 40 percent more than their home was worth.
Here is a look at the data for the nation’s largest metro areas, with the percentage of home owners in negative equity in the first quarter of 2012 and the fourth quarter of 2011, as well as the percentage of underwater home owners who are more than 90 days delinquent on their payments:
Is this a surprise? Where is your market on this list? What are the implications for the housing market? Feel free to leave a comment below: