Welcome!

News Feed Item

/C O R R E C T I O N -- Zillow, Inc./

The press release "High Negative Equity Among Gen X Homeowners Causing Housing Market Gridlock" issued earlier this morning by Zillow contained an error. The wrong phrasing was used when describing Generation X's negative equity situation, resulting in a press release that does not accurately tell the story. Zillow said: 42.6% of Generation X homeowners with a mortgage are underwater. Zillow should have said: 42.6% of underwater homeowners are in Generation X. In fact, only 18.7% of Generation X homeowners with a mortgage are underwater. Additionally, Zillow has updated the chart in the press release that shows this data at the metro level. Zillow sincerely regrets the error. The complete, corrected release follows:

U.S. Negative Equity Falls to 17 Percent

More than one-third of mortgaged homeowners have "effective negative equity," or less than 20 percent equity in their home, according to a Zillow analysis

SEATTLE, Aug. 26, 2014 /PRNewswire/ -- One in six (17 percent) U.S. homeowners with mortgages – or 8.7 million – were still underwater on their mortgage in the second quarter of 2014, despite rising home values, according to the Zillow® Negative Equity Report[i] . This is down from 18.8 percent in the first quarter of 2014, and down from 23.8 percent from last year (Q2 2013).

The effective negative equity rate, or the percentage of homeowners who have less than 20 percent equity in their home, fell to 34.8 percent in the second quarter, down from 36.9 percent from the first quarter of 2014, and down from 41.9 percent last year (Q2 2013). Homeowners with less than 20 percent equity in their current home may have a difficult time covering the costs on selling and purchasing a new property.

Looking ahead, the national negative equity rate is expected to fall to 14.9 percent of all homeowners with a mortgage by the end of the second quarter of 2015, according to the Zillow Negative Equity Forecast[ii].

Of the 35 largest metros covered by Zillow, more than one-fourth of homeowners in Atlanta (28.9 percent), Las Vegas (27.4 percent) and Chicago (27.1 percent) were still underwater on their homes at the end of the second quarter. The lowest rates of negative equity were in San Jose, Calif. (4.6 percent), San Francisco (8.2 percent) and Austin, Tex. (8.3 percent).

Nationally, millennial homeowners held 19.6 percent of all underwater mortgages while Generation X held 18.7 percent and Baby Boomers held 10.9 percent.

Metropolitan Area

Q2 2014 Negative Equity Rate

Q2 2014 "Effective" Negative Equity Rate

Negative Equity Rate Among All Mortgaged Homeowners Aged 20-34

Negative Equity Rate Among All Mortgaged Homeowners Aged 35-49

Negative Equity Rate Among All Mortgaged Homeowners Aged 50-64

UNITED STATES

17.0%

34.8%

19.6%

18.7%

10.9%

New York/

Northern New Jersey

14.7%

28.5%

18.0%

19.0%

10.0%

Los Angeles

9.3%

19.9%

8.3%

11.7%

7.2%

Chicago

27.1%

43.6%

31.5%

30.5%

16.7%

Dallas-Fort Worth

10.4%

33.8%

13.1%

9.8%

6.0%

Philadelphia

20.1%

39.0%

29.2%

23.4%

11.8%

Houston

8.4%

26.0%

9.8%

7.7%

4.7%

Washington

19.3%

37.7%

18.6%

23.3%

15.3%

Miami-Fort Lauderdale

21.9%

33.8%

16.2%

23.0%

15.7%

Atlanta

28.9%

48.6%

23.6%

29.5%

21.2%

Boston

10.6%

26.1%

13.2%

13.3%

6.4%

San Francisco

8.2%

17.0%

7.3%

10.4%

6.7%

Detroit

23.2%

36.9%

14.6%

23.1%

15.4%

Riverside

18.0%

32.1%

11.5%

19.6%

15.3%

Phoenix

20.1%

36.4%

16.3%

23.5%

16.0%

Seattle

17.0%

34.9%

21.5%

20.1%

11.2%

Minneapolis-St Paul

17.9%

38.8%

20.2%

22.1%

11.1%

San Diego

10.0%

23.1%

9.5%

12.0%

7.7%

St. Louis

21.7%

42.9%

26.8%

23.8%

13.6%

Tampa

23.7%

39.4%

22.0%

26.3%

16.9%

Baltimore

21.7%

41.7%

29.1%

26.2%

14.2%

Denver

9.7%

30.9%

9.2%

10.7%

6.9%

Pittsburgh

10.6%

24.5%

12.5%

11.5%

6.0%

Portland

12.2%

31.6%

16.1%

14.4%

8.2%

Sacramento

16.9%

32.8%

11.9%

20.0%

14.0%

San Antonio

12.2%

34.3%

17.9%

12.2%

6.5%

Orlando

24.9%

41.0%

18.6%

26.7%

19.4%

Cincinnati

18.3%

40.9%

20.9%

20.3%

13.0%

Cleveland

20.8%

39.5%

22.7%

24.8%

14.0%

Kansas City

19.5%

42.9%

23.6%

20.2%

11.9%

Las Vegas

27.4%

43.6%

15.3%

28.7%

24.1%

San Jose

4.6%

11.6%

5.1%

5.9%

3.2%

Columbus

18.1%

40.7%

21.0%

19.8%

12.7%

Charlotte

17.3%

42.8%

20.3%

19.7%

11.5%

Indianapolis

15.2%

38.3%

17.3%

16.2%

10.5%

Austin

8.3%

27.8%

12.3%

8.1%

4.6%

About Zillow, Inc.

Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy, Agentfolio and Digs are registered trademarks of Zillow, Inc. HotPads and Retsly are trademarks of Zillow, Inc.

TransUnion is a registered trademark of Trans Union LLC.

[i] The data in the Zillow Negative Equity Report incorporates mortgage data from TransUnion, a global leader in credit and information management, to calculate various statistics. The report includes, but is not limited to, negative equity, loan-to-value ratios, and delinquency rates. To calculate negative equity, the estimated value of a home is matched to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans. All personally identifying information ("PII") is removed from the data by TransUnion before delivery to Zillow. Overall, this report covers more than 870 metros, 2,400 counties, and 23,000 ZIP codes across the nation. 
[ii] The Zillow Negative Equity Forecast is a conservative estimate of what negative equity rates will be a year from now. To forecast negative equity, we take the current home value of a house and appreciate it by the Zillow Home Value Forecast (ZHVF) for the MSA in which the home is located. In cases where there is no ZHVF available, we use the historical rate of home appreciation, and for metros that don't have a historical rate of appreciation, we use the historical rate of inflation at the national level. For homes that are not located in a metropolitan area, we use the forecasted national rate of appreciation. To calculate the level of home equity a year from now, we use the forecasted home value and the current outstanding debt balance, where we make no assumptions about a homeowner's debt level a year from now. We also make no assumptions about foreclosure activity in the coming year. Therefore, this forecast is a very conservative one, as homeowners will likely continue to pay down their debt throughout the year and homes will likely continue to be foreclosed on, and both of these factors will contribute to a lower negative equity rate. The Zillow Negative Equity Forecast can therefore be considered a higher bound estimate of negative equity.

SOURCE Zillow, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.