Zillow releases areas with most underwater homes by zip code

Updated:

Loan to value distribution for homeowners with a mortgage in the Seattle metro in 2012 Q4 vs. 2011 Q4

SEATTLE - Negative equity continued to fall in the fourth quarter of 2012, dropping to 27.5 percent of all homeowners with a mortgage, compared with 31.1 percent one year ago, according to the fourth quarter Zillow® Negative Equity Report. Almost 2 million American homeowners were freed from negative equity over the course of the year, with nearly 32,500 of them in the Seattle metropolitian-area.

 

Zillow reports the zip codes with the highest percent of homes with a mortgage in negative equity are in Pierce County, which is the county most underwater in the Seattle-metro area, with 44.6% of homeowners with mortgages underwater. Snohomish and King counties have 40% and 26.4% of homeowners with a mortgage underwater, respectively.

 

ZIPs with HIGH % of homes with a mortgage in negative equity:

  • 98558 – Roy (city), Pierce (county): 83.3%
  • 98385 – Buckley, Pierce: 68%
  • 98204 – Paine Field-Lake Stickney, Snohomish: 66%
  • 98424 – Fife: 65.6%
  • 98387 – Spanaway, Pierce: 62.1%

 

ZIPs with LOW % of homes with a mortgage in negative equity:

  • 98039 – Medina, King: 4.8%
  • 98040 – Mercer Island, King: 7%
  • 98112 – Seattle, King: 8.7%
  • 98105 – Seattle, King: 9%
  • 98006 – Bellevue, King: 9.7%

 

Seattle Metro Highlights:

  • Negative equity fell in the fourth quarter to 33.5% from 34.2% in the third quarter of 2012.
  • As of the end of the fourth quarter, there were 221,024 homes in negative equity in the metro. The cumulative amount of negative equity is $20.3 billion. 32,457 homes were freed from negative equity in 2012.
  • The Zillow Negative Equity forecast predicts that the negative equity rate among all homeowners with a mortgage will fall to at least 29.9% by the fourth quarter of 2013, freeing more than 23,441 additional homeowners.  
  • The 90-day delinquency rate for all mortgaged homes is 10.9% which is above the national rate of 8.9%.
  • Of homes that are in negative equity, 39.9% are underwater by 20% or less.
  • Of homes that are in negative equity, 9.6% owe more than double their home’s worth, which is below the national rate of 13.8%

 

County Breakdown:


  • Pierce County is the most underwater in the Seattle metro, with 44.6% of homeowners with mortgages in negative equity.
  •  Other counties: Snohomish County: 40% of homeowners with a mortgage are in negative equity.
  • King County: 26.4% of homeowners with a mortgage are in negative equity.

 

Get the complete report at this link - EXCEL required.  File will download.

Get an abbreviated PDF version of the report that has been edited for formatting at this link.

See Zillow.com for more information.