Friday, September 05, 2014
New report: Negative home equity rate in D-FW area down almost 70 percent in last two years
The number of Dallas-Fort Worth homeowners who own more than their house is worth has dropped by almost 70 percent in the last two years, according to a report by Zillow Inc.
Only about 10.4 percent of D-FW residents with a home loan were underwater in their mortgage at mid-year, the Seattle-based residential real estate firm said. This area has the sixth lowest negative equity rate among the major surveys Zillow measured.
That compares to about 17 percent of homeowners nationwide who owe more than their home would sell for.
Falling negative home equity rates mean that fewer homeowners are forced into foreclosure when they can’t sell or refinance their property.
Zillow is forecasting that by mid-2015 the negative equity rate among homeowners with a loan will be just 8.1 percent.
“Negative equity will continue to recede as home values keep growing, though at a slower pace because the rate of home value growth is slowing and expected to continue to slow,” Zillow reports.
The rise in home prices in North Texas has caused the number of homeowners who are underwater in their loans to decline significantly in the last few years.
Home prices in the D-FW area have grown by about 40 percent since the worst of the recession.
By Steve Brown- Dallas News