Report finds 24.8 percent of Summit, Portage owners have negative equity
Published on Thursday, May 07, 2009
This article from http://Ohio.com is a bit of a micro-view segue from the previous blog article. Zillow has plenty of research and commentary to show how Akron Residential is slowly rotting from the inside, despite all the wonderful efforts of local business people. The local government needs to hopefully read this blog and many of the available resources out there screaming about the area needing help… anyhow… I digress… enjoy the articles’ worth content.
Beacon Journal staff report
Nearly a quarter of all homeowners in Summit and Portage counties owe more on their mortgage than their home is currently worth as values fell from a year ago, according to the latest research by the online real estate firm Zillow.
Home values in the Akron metropolitan statistical area — defined as Summit and Portage counties — fell 7 percent in the first three months this year compared to a year ago, according to the Zillow Home Value Index. The Zillow Real Estate Market Reports look at 161 metropolitan areas and cover the value changes in all homes, not just homes that have recently sold.
The average home price in the greater Akron area for the first quarter this year was $115,682, down 14.9 percent since the Akron market peaked in 2006, Zillow announced in a release Wednesday.
The results for Summit and Portage counties showed:
• 24.8 percent of all Akron-area homeowners now have negative equity, meaning they owe more on their mortgage than their home is currently worth. The local area still fared better than the nation overall, according to Zillow.
• Homes in the Akron area lost $815.3 million in value during the first quarter of 2009, and have lost $3.2 billion in the past 12 months.
• 28.8 percent of transactions in the past 12 months were foreclosures.
• 8 percent of homes sold were ”short sales,” meaning the proceeds fell short of the balance owed on the mortgage.
Nationally, home values fell in the first quarter, declining 14.2 percent from the first three months of 2008 to an average of $182,378.
Declining home values left 28.9 percent of all American homeowners with negative equity by the end of the first quarter, Zillow said.
”Slowing declines in select markets are a bright spot or, at least, what passes for one given current market conditions,” Stan Humphries, Zillow vice president of data and analytics, said in a prepared statement. ”Unfortunately, given the magnitude of the current rates of decline, we’re still many months away from a bottom even as depreciation slows.”