Utah Well Below National Rate for Negative Equity

In Utah, fewer homeowners are underwater when it comes to the value of their homes, according to a new report by American First CoreLogic. At the end of this year’s third quarter, 18 percent of Utah residential properties (40,801) with a mortgage were in negative equity — meaning borrowers owed more on their mortgage than their home was worth.

While 18 percent seems like a large number, it definitely bolsters our hope for the market when considering that it means 82 percent of homeowners in Utah are still in a good position with their homes. And, Utah’s negative equity rate is still well below the national rate of 23 percent. And it remains far below those of neighboring states. In Nevada, 65 percent of residential properties with a mortgage were in negative equity, the report said. In Arizona, 48 percent of residential properties were in negative equity. Idaho was at 20 percent and Colorado was at 19 percent.

The report confirms that the rampant housing speculation that was so prevalent in many states was not as severe here in Utah. It also means Utah’s foreclosure rate will not rise as dramatically in the coming year.

This entry was posted on Wednesday, December 2nd, 2009 at 3:41 pm and is filed under Economy, Market Conditions. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.