This is why.
This is Zillow’s map of negative equity by county in Central California. The more red, the more they bled. You can look at the map by state, by county, and by zip code. At the county level, we can see that the only Bay Area regions that aren’t about to terminate from failure to clot are Santa Clara, San Mateo, San Francisco and Marin Counties. Santa Cruz County is looking a little pink around the neck (it’s 22% underwater) but it’s downright alabaster compared to the abattoir north and east of San Jose. Here are the county by county numbers for 2012.
|Bay Area County||Percent of homes w/mortgage underwater||Median Zillow Home Value Index||Decline from peak value|
|Contra Costa||33% (highest 20% in US)||$334,200||-46%|
|Solano||54% (highest 1% in US)||$202,400||-58%|
And here’s a live version for you to play with, although you can also head over to Zillow and see it in action wherever you want to examine.