Julie Jalone realtor

The housing market is expected to improve in the coming years.ย  Although the California and Sacramento real estate market are a long way from full recovery we are seeing positive signs.ย  One of those signs is the number of up-side-down mortgages.ย  According to a report from CoreLogic, the number of underwater mortgages has declined from 12.1 million or 25.2 percent of all mortgages, at the end of 2011 to 23.7 percent or 11.4 million, at the end of the first quarter of 2012.

These are national numbers and although there is some improvement in California we remain in the bottom ten states with underwater home owners.ย  Our housing market is so large it has significant impact on national numbers.ย  Approximately 22 percent of total property value and outstanding mortgage debt in the U.S. is in California.ย  Between the 4th quarter of 2006 and the 4th quarter of 2011, home prices fell in our state by an estimate of 46.7 percent.ย  The only states with larger declines were Nevada, Arizona and Florida.ย  Driving these staggering declines is California’s high unemployment rate.ย  In May of this year we are still in double digits at 10.8 percent.

In California the percent of underwater mortgages is 30.5 percent compared to the national average of 23.7 percent.ย  Our total property value is the highest at over $2.6 billion and we also have the highest outstanding mortgage debt at just over $1.9 billion.

On the positive, California is ranked 18th in the percent of mortgages past due more than 90-days at 6.2 percent.

  • Nevada – 61.2
  • Florida – 45.1
  • Arizona – 43.4
  • Georgia – 37.2
  • Michigan – 35.
  • California – 30.5

These are distressing numbers and it is hard to believe in Nevada the total property value is less than mortgage debt outstanding and 6 out of every 10 homeowners owe more on their homes than they are worth.ย  Nevertheless, based on where the housing market has been over the last six years the improvements we are seeing in the number of underwater mortgages is an encouraging sign of the housing market improving.

Julie Jalone

Realtor Julie Jalone

If you or someone you know is considering buying, I would happily answer questions. I am available at the MagnumOne Realty office in Roseville at (916) 899-6571 and email at [email protected].

We specialize serving the needs of buyers and sellers of homes in the Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.

Roseville Today is locally owned & community supported.
We have NO AFFILIATION with print, politics or corporate media.
(20+ Years Strong!)