Zillow Q1 2014 Negative Equity Report Summary: Tampa, St. Petersburg, Clearwater Region
According to the latest Zillow Negative Equity Report, the national negative equity rate fell to 18.8 percent in the first quarter. With the pace of home value appreciation slowing, the pace of negative equity improvement will also slow. Zillow currently predicts that the negative equity rate will fall to 17 percent by the end of the first quarter of 2015.
National Stats vs. Local Real Estate:
We all know that national statistics are a good indicator of the real estate market as a whole, but let’s look at our local housing market here in Tampa Bay.
Some neighborhoods in Tampa Bay have recovered quite nicely and are already at 17%: including South Tampa’s popular 33629 Zip Code. Also note 33706 in St. Pete Beach, according to Zillow only 16% of homes are underwater.
It’s not all good news however. If you hover over the map below, you’ll see the dark red areas indicate a high percentage of distressed housing is still prevalent. Town N’ Country, in the 33634 Zip code indicates that 45% of all properties are worth less than what people owe.
But despite the improvements, one in five American homeowners with a mortgage remains underwater, a stubbornly high rate that is contributing to inventory shortages and holding back a full market recovery. The “effective” negative equity rate, which includes those homeowners with a mortgage with 20 percent or less equity in their homes, was 36.9 percent in the fourth quarter.