The number of properties seriously underwater increased during the first quarter of the year, and although nationwide there are fewer such homes than a year ago, the problem is getting worse in cities such as Baltimore, Philadelphia and Cleveland.
According to ATTOM Data Solutions’ Home Equity & Underwater Report, at the end of the first quarter of 2017 there were nearly 5.5 million homes where the combined loan amount was at least 25 percent higher than the property’s estimated market value.
At the end of the fourth quarter of 2016, there were 5.4 million seriously underwater properties. Year-over-year, the number of underwater homes dropped by more than 1.2 million, compared with the 6.7 million underwater properties at the end of 2016’s first quarter, the report found.
“While negative equity continued to trend steadily downward in the first quarter, it remains stubbornly high in often-overlooked pockets of the housing market,” ATTOM Data Solutions Senior Vice President Daren Blomquist said in a release.
“For example, we continue to see one in five properties seriously underwater in several Rust Belt cities, along with Las Vegas and central Florida. Additionally, close to one-third of homes valued below $100,000 are still seriously underwater,” he added.
Cities with the largest quarterly increases in underwater homes were Baltimore (up 26,974); Philadelphia (up 8,919); McAllen, Texas (up 7,746); Cleveland (up 7,631) and St. Louis (up 6,844).
Other cities registering a quarterly increase in underwater properties included Columbus, Ohio; New York; Milwaukee; Baton Rouge, La.; and Cincinnati.