Underwater Equity Data - Zandi and Shiller (mortgage, mortgages, percentage)

[MikeyKid]

14.7 Million (19%) Of US Mortgages Have $770 Billion In Underwater Equity, $2.4 Trillion In Total Debt Impaired | zero hedge

An excel spreadsheet released from a recent briefing by Mark Zandi and Robert Shiller is making the rounds within the blogosphere. It provides a useful compilation of the underwater equity statistics in the country. In a nutshell here are the observations:

• 19%, or 14.748 million of the 77.570 million US households, are in negative equity
• 30.6% of the 48.243 million of homeowners with first mortgages are in negative equity
• 21.8% of the 67.578 million in owner-occupied single family homes are in negative equity
• 4.133 million of the 14.748 million of underwater homeowners are underwater by 50%+, meaning the owe more than 50% more than their homes are worth
  • Of the 50%+ underwater category, the worst states are California (672K), Florida (423K), and Texas (344K)
• Total Negative Equity in the US is currently estimated at $771.1 billion
  • California mortgages have $234 billion in negative equity, Florida mortgages have $79 billion in negative equity, Texas mortgages have $48 billion in negative equity
• $2.4 trillion in total mortgage debt is impaired due to negative equity

How Mark Zandi, who prepared this spreadsheet according to the meta data, could look at this data and come up with his recent paper in collaboration with Blinder, claiming that the recession is over, is simply beyond rationalization.

Check out the charts (more at the link)

[art_teacher_mom]

I am shocked that Texas is 3rd on this list. I would have expected Arizona or Nevada, but Texas??

[Charles]

Originally Posted by art_teacher_mom

I am shocked that Texas is 3rd on this list. I would have expected Arizona or Nevada, but Texas??

Texas may have a smaller percentage but since it is so populous compared to AZ and NV it's negative equity in dollars is larger.

[KonaKat]

How Mark Zandi, who prepared this spreadsheet according to the meta data, could look at this data and come up with his recent paper in collaboration with Blinder, claiming that the recession is over, is simply beyond rationalization.

Well, let me clue you in on that mystery. Because the administration says we're through with the recession.

Has to be true then, right?

[MikeyKid]

Originally Posted by art_teacher_mom

I am shocked that Texas is 3rd on this list. I would have expected Arizona or Nevada, but Texas??

Yeah the total debt, but take a look at the chart below which shows percentage of folks based on % of owner occupied - by population that's where your Arizona and Nevada lead the way. Also see who are >50% underwater. 50% = wow... Owing OVER TWICE what your home is worth to the bank is insane. 13% of people in Nevada are staring at that right now. Almost 60% are underwater period. What?!

and seriously... wtf California. That is just unbelievable that someone can look at that level of debt and think it's OK. double wow.

[manderly6]

So what does it mean if a state isn't on either chart?

[MikeJaquish]

Interesting that over 50% of negative equity is in only 4 states.

I wonder how much positive equity there is in US Homes?

[Trump]

The debt is probably a solid figure but how accurate is the value of the home?

[middle-aged mom]

That means about 81% of folk have equity in their homes.

Best guess about 25% own their homes free and clear.

Gotta run now cause the sky is falling.

[thndrcloud]

Originally Posted by manderly6

So what does it mean if a state isn't on either chart?

That New Jersey isn't "butt" over teakettle and you're lucky you bought there?