Today, in the Calculated Risk Real Estate Newsletter: ICE (Black Knight) Mortgage Monitor: “It’s fair to expect prices to weaken later in 2023”
A brief excerpt: Some interesting data on negative equity and limited equity.
• Likewise, the number of borrowers in limited-equity positions remains historically low, with 1.9M (4.2% of) mortgage holders having less than 10% equity in their homes
• Austin – where home prices remain more than 14% off 2022 peaks – is in the worst position of all markets, with 2.1% of mortgage holders underwater, followed by Las Vegas (1.7%) and Phoenix (1.6%)
• San Jose – despite its home-price struggles last year – and Los Angeles have the lowest negative equity rates at 0.1%
• Overall, the weighted-average combined loan-to-value ratio for all mortgaged homes in the U.S. is 45%, among the strongest we’ve seen, dating back more than 20 years, outside of Feb.-Aug. 2022 at the peak of home prices
emphasis addedThere is much more in the article. You can subscribe at https://calculatedrisk.substack.com/