Should we be worried about the number of Austin homeowners who are underwater on their homes? Having suffered a 20%+ drop in home values how big is that number?
That’s what I’m trying to research. Recent data from Attom showed that 1 out of every 37 homes Nationally were severely underwater. That number has got to be higher here in Austin.
This from Core Logic: “One of the most alarming aspects of the housing bubble crash was the staggering number of Americans who were underwater on their homes. In 2010, CoreLogic’s national data in the fourth quarter revealed that a shocking 23.1% of homes with mortgages were underwater, totaling just over 11 million homes.
However, the situation has significantly improved since then, thanks to the Qualified Mortgage rule (QM) that was implemented in 2010. Today, we see a much more manageable figure, with approximately 1 million homes underwater, representing a significant and reassuring reduction to roughly 1.8% of homes that have a mortgage.”
So many people refinanced and took out cash when rates dropped below 4%. My gut tells me that many Austin homeowners are underwater.
What are you thoughts?
How can I help you?
Dan Forbes
