By Kristena Hansen | Phoenix Business Journal
Roughly 22 percent of metro Phoenix homeowners were upside down on their mortgage during the fourth quarter, accounting for $14.3 billion in negative equity, according to a new report from Zillow Inc. That landed the Valley the 13th highest underwater rate in the nation, according to Zillow. However, it was a steep plunge from a year ago, when the local negative equity figure stood at a staggering 40 percent, putting Phoenix at No. 8.
Statement by real estate consultant Jim Belfiore:
“A lack of equity in existing homes is the more impactful on the housing market today than any other single issue. Even those homeowners that have equity have little. You see it in the current resale stock.
“Homeowners wanting to migrate to a new home are struggling to bring homes to a sellable condition plus come up with a down payment for a new home. Fewer homeowners underwater is certainly positive for the housing market, but equity is still holding back the housing market.
