Sinking prices put more homeowners underwater
The number of homeowners stuck with negative equity is on the rise again across Greater Boston.
Nearly 17 percent of homeowners across the Boston area are now underwater, meaning they owe more on their mortgages than their homes are worth, according to Zillow's first quarter market report.
That's up from 11.7 percent a year ago.
The increase underwater homes is a logical consequence of the double dip in the real estate market that is now taking shape, with home prices falling again, both here and across the country.
Boston area home values fell 5.3 percent over the past year, to a Zillow Home Value Index of $305,800. (Zillow's index looks at the value of all homes, not just sales.)
Nationally, home values fell 8.2 percent over the same period to a Zillow index value of $169,600.
Boston area home values are now down 23.2 percent from their peak in July, 2005. Nationally, that number is closer to 30 percent, even though the peak came a year later in June, 2006.
