The number of Dallas homeowners who owe more than their property is worth has fallen to below 10 percent.
Zillow.com reports that 9.3 percent of Dallas area residents with a home loan are underwater in their mortgage. That’s down from about a 30 percent share who were upside down in their home at the worst of the recession.
Nationwide 16.9 percent of all homeowners with a mortgage in the third quarter owned more than the property was worth, according to Zillow.
“The market has made terrific strides since bottoming out in late 2011 and early 2012, with millions of underwater homeowners freed in just the past few years, and millions more set to surface in coming months and years,” said Zillow Chief Economist Dr. Stan Humphries. “Looking at negative equity helps us understand so many of the currently out-of-whack dynamics in the housing market, including low inventory, rapid home value appreciation and weak sales volumes.”
Zillow predicts that the percentage of properties in the Dallas area with negative equity will drop to 7.3 percent during the next year.
North Texas home prices have risen by almost 10 percent this year and are at a record high level, according to data from real estate agents.
The highest negative equity rates in the country are in markets that suffered worst during the housing recession, including Las Vegas (27.8 percent), Atlanta (27.1 percent) and Chicago (25.3 percent).
Reference: The Dallas Morning News