Tuesday, August 10, 2010

A fifth of Portland-area homeowners underwater on mortgage

From the Oregonian:

More than one in five, 22.6 percent, of Portland-area owners of single-family homes with mortgages were underwater at the end of second quarter, according to Zillow.com.

Portland-area home prices fell 7.1 percent year-to-year in the period ended June 30, according to Zillow’s Home Value Index. Since peaking in the summer of 2007, Portland home values have fallen more than 22 percent to April 2005 levels. As values decline, the percentage of homeowners who owe more than their home is worth takes a corresponding jump.

In Central Oregon, the Beaver State’s housing crash epicenter, the home equity numbers are far worse. Zillow reports that more than 40 percent of homeowners in Bend are in negative equity positions. The median home price in Bend has declined 52.6 percent from the peak, according to the company.

As horrific as that sounds, Bend still has a ways to go before it reaches the levels of Nevada and Florida. An astounding 73 percent of homeowners in Las Vegas are underwater, where median homes prices have dropped 58 percent since the peak.