Source: LPS Lender Processing Services (2012).
28% of Arizona Loans Under Water
At first the 28% number for Arizona surprised me but now that I think about it, it kinda makes sense.
It’s basically everyone who bought or refied from 2004 to 2008 who hasn’t already been foreclosed on.
I don’t see that percentage falling fast. As home prices rise in Arizona some home values will resurface but it could take a decade for the homes bought at the peak to have any equity (in nominal dollars).
This really has big supply implications since those people aren’t likely to be able to sell, or at least not without doing a short sale. And you’d think if they were going to do a short sale or walk away that they’d have done it by now.
It’s another reason Arizona home prices rose so quickly in the spring. In a way, the underlying supply of homes has fallen by 28%.
55% of Nevada Loans Under Water
Nevada seems unbelievable with 55% of current loans under water. Did a lot more than half the people in Nevada really buy or refi from 2004 to 2008? Well, that’s not exactly right, they’re talking loans not people but still.
43% of Georgia Loans Under Water
Georgia surprised me with 43% under water. It’s worse than Florida!