24/7 Wall Street analyzed the latest report from CoreLogic and summarized the 10 states with the greatest percentage of underwater homes across the country.

The CoreLogic report (which shows the massive extent of public data coverage they have) was based on actual loan amounts (they cover 85 percent of all U.S. homes). They estimated market values of homes valued between $30,000 and $30 million (using CoreLogic’s suite of automated-valuation models), and then subtracted the remaining estimated balance of loans on each property.

24/7 Wall Street’s report found the following summary statistics (and some which I calculated):

The findings are very interesting and non-homogenous.

• While Nevada has on average $1.14 of mortgage debt for each dollar of home value (and yes, that is across the entire market), they only have one delinquency for each 5.1 homes that are underwater
• While Florida’s has 25 percent fewer of homes statewide underwater percent when compared to Nevada, the Florida delinquency rate is 38.8 percent greater than Nevada’s
• While Arizona has 43.4 percent of homes underwater, just one of each 7.5 homes is delinquent (perhaps expectations of continuing value recovery)
• Ohio, with 24.6 percent of all homes underwater (versus 43.4 percent of Arizona) has twice as many (percentage wise) of those homes delinquent when compared to Arizona (perhaps expectations of minimal price recovery in the near future)

This report says a lot regarding some U.S. homeowners in how many fewer delinquencies there are when compared to the number underwater. As rents continue to increase, I would expect the delinquency rate to retract even further. And that is good news.

Ted

Tags: Home value • real estate trends • rent • underwater homes