San Francisco Business Times – by Steven E.F. Brown
California is one of five states with the most “negative equity” in its home market, according to a report by CoreLogic Inc.
The Santa Ana business (NYSE: CLGX) said 33 percent of residential properties with mortgages in the Golden State were “underwater,” meaning the property is worth less than is owed on the loan. The figures are for the end of the second quarter.
That works out to 2.26 million underwater properties in the state. Another 286,000 homes were “near negative equity.”
Total outstanding mortgage debt in California was $2.03 trillion at the end of the second quarter, according to the report.
Though California’s rate of negative equity dropped 1.3 percent from the first quarter to the second, a quick rate of decrease, that was “primarily due to foreclosure, not the stabilization or small increases in prices in some markets,” the report said.
Thanks to Burbed reader Mark for this find!
Now sure this might seem gloomy at first, but think about it – this is about California as a whole. This includes places like… the Indio and the East Bay. Of course it’s going to look bad.
The real question, of course, is: what is it like in the Real Bay Area?
My hunch – 102% of houses (maybe not condos or townhouses) are above water.
Does anyone have data on this?