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re:PDX is presented by Claire Widmark, broker affiliated with M Realty LLC in Portland, Oregon.
Phone: 971-275-3691
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Oregon Holds Head Above Water in Negative Equity Study
The question is, “For how much longer can we dog-paddle?”
So far, Oregon is faring better than most states in housing value-to-mortgage ratios. In a study published by CNN Money, Oregon ranks 44th in the nation in mortgages that are ‘underwater’ — or when more is owed on the mortgage(s) than the home is worth. Only 7.5% of homeowners in Oregon are underwater on their mortgages. For now.
A couple factors come into play. One, the price decline that bubble states have been suffering from has come late (and mildly, so far) to Oregon. And, local lenders apparently have been somewhat more conservative in their loan practices than in more speculative states like Nevada, California, and Florida.
However, with softening prices, high inventory levels, some local job cuts, and a general real estate malaise in the Portland area, more owners could find themselves getting close to the dangerous water level. It doesn’t mean imminent foreclosure, because many can pay their bills and weather the negative equity–but it’s certainly a precursor to defaults.
Just be glad you’re not in Nevada.
Top 10 states with underwater loans
| State | # of mortgages | % underwater |
| Nevada | 609,577 | 47.8% |
| Michigan | 1,145,572 | 38.6% |
| Arizona | 1,287,076 | 29.2% |
| Florida | 4,248,470 | 29.2% |
| California | 6,461,981 | 27.4% |
| Georgia | 1,456,327 | 23.2% |
| Ohio | 1,905,000 | 22.0% |
| Colorado | 1,045,773 | 18.3% |
| New Hampshire | 144,479 | 17.2% |
| Texas | 2,721,638 | 16.5% |
Top 10 states with the fewest underwater loans
| State | # of mortgages | % underwater |
| New York | 1,554,607 | 4.4% |
| Hawaii | 201,188 | 5.6% |
| Pennsylvania | 1,413,181 | 5.7% |
| Montana | 87,181 | 6.9% |
| Connecticut | 678,766 | 7.4% |
| Alabama | 238,978 | 7.4% |
| Oregon | 641,820 | 7.5% |
| Washington | 1,273,659 | 7.6% |
| New Mexico | 186,844 | 8.2% |
| New Jersey | 1,748,179 | 9.3% |
Source: First American CoreLogic
Lending watchdog Mr. Mortgage adds his inimitable analysis of the negative equity tide.
Some will say, “Be patient. It’s only a matter of time” before Oregon’s numbers catch up. And they may be right, but it’s nice to be at the bottom of some lists for as long as you can.
Photo by charl22, used under Creative Commons license.
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One Response to “Oregon Holds Head Above Water in Negative Equity Study”
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Ron – I love the notice about copyright at the bottom – you are so up with the times – letting your readers know to come to the source and not be fooled. You are one smart cookie – Bend is seeing a lot more upside down folks that the rest of Central Oregon on this side of the mountain. However, Bend went through such a huge growth then the job market never kept up with the increasing prices.