Nationally, 10.1% or 5.5M properties were “seriously underwater” in Q2 2018, according to ATTOM Data Solutions. And more than 50% of these troubled properties live in just 65 zip codes in the aftermath of the housing collapse ten years ago.
“Seriously underwater” properties are defined as properties with combined estimated loan balances at least 25% higher than the properties’ estimated market values.
The zip code 65809, also known as Springfield, Missouri, has the dubious distinction of having the highest percentage of seriously underwater properties during Q2 of this year. 81% of the properties in Springfield are seriously underwater or, said another way; a scant 19% of Springfield’s properties are above water.
Illinois is home to the remainder of the top 5 zip codes with seriously underwater properties. Those zips are
60134 – Geneva, Il with 76% underwater properties
60124 – Elgin, IL with 75% underwater pro9perties
60175 – St. Charles, IL with 73.6% underwater properties
60554 – Sugar Groove, IL with 71.1% underwater
The good news? Daren Blomquist, senior vice president of ATTOM Data Solutions, said, “The share of seriously underwater properties has dropped well below 10% in bellwether housing market such as California, Texas, Washington, Colorado and New York.” The bad news? “…the underwater rate remains stubbornly high in markets where price appreciation has not been as strong during the housing recovery of the last six years.”
States with the highest share of seriously underwater properties during Q2 2018 include
-Louisiana – 21.7%
– Illinois – 18.5%
– Missouri – 17.8%
– Mississippi – 16.8%
– Ohio – 16.2%
Among the metro areas with the highest share of “seriously underwater” properties are
- Baton Rouge – 21%
- Toledo – 20%
- Scranton PN – 19.6%
- Youngstown OH – 19.3%
- New Orleans – 18.9%