Brought to you in part by
KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
 Real Estate
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.
Houses Homes
Nearly 40 percent of Seattle area homeowners owe more than their home is worth, up slightly from late last year, according to the first-quarter Zillow Negative Activity Report. (AP file photo)

Not so rosy: Seattle 'underwater' owners reach 40 percent

BY Tom Kelly  on May 24, 2012 @ 6:53 pm (Updated: 5:24 am - 5/29/12 )

Nearly 40 percent of Seattle area homeowners owe more than their home is worth, up slightly from late last year, according to the first-quarter Zillow Negativity Activity Report.

The Seattle-based online real estate company also revealed that 10.2 percent of Seattle borrowers are "seriously delinquent" - 90 days or more behind on payments.

Pierce County led all counties in the state in "underwater" homeowners, registering 50 percent in the Zillow report.

Nationally, nearly one-third (31.4 percent) of U.S. homeowners with mortgages - or 15.7 million - were underwater on their mortgage. Collectively, underwater homeowners owed $1.2 trillion more than their homes were worth. Negative equity rose slightly from 31.1 percent in the fourth quarter, and declined from 32.4 percent one year ago.

"While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners," said Stan Humphries, Zillow's chief economist. "As home values slowly increase and these homeowners continue to pay down their principal, they will surface again. . ."

Negative equity remained high despite increasing home values in the latter part of the first quarter. A slower pace of foreclosures after the robo-signing issues of 2010 contributed to slower progress in working down negative equity. Foreclosures cause homes to come out of negative equity when a bank or third party takes ownership.

Despite the high rate of negative equity, the majority of underwater homeowners are current on their mortgages. Nine in 10 continue to make their mortgage and home loan payments on time, with just 10.1 percent of underwater homeowners more than 90 days delinquent.

Tom Kelly, Real Estate Today
Tom Kelly has been a professional journalist for 36 years. He served The Seattle Times for 20 years, many as Real Estate Editor.
More Real Estate News

MyNorthwest.com - Purpose of Comments statement
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.

Comments (36)


  • Add A Comment

  • CH wrote...
    Who's fart is it?
    May 25, 2012 7:42 pm
    Obama's?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • longwayhome wrote...
    republicans
    May 25, 2012 8:45 pm
    8 long years of stupid financial decisions, lax oversight on banks (blame bush) same with the automobile industry. The republican party is to blame for all of the financial woes of this country. The wars (bush and cheney) the banks, the endless industries that had to fold due to the mis-management of govt. under the control of the republicans. There are still people out there that will vote for them again. that is considered insanity. Expecting different results from the same set of idiots that got us into this problem in the first place. Sheesh!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • SickofSeattleite wrote...
    you seem confused
    May 27, 2012 7:47 am
    i know for a fact Democrats had as much if not more to do with all the wasteful spending and problems with America...Do you support Obama's train wreck of a presidency piling on massive historic debt? Your a fool.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Toolbridge wrote...
    You are confused and are a fool.
    June 3, 2012 9:15 pm
    Zero regulation by Conservative Republicans caused financial disaster. Our new Congress has yet to enact any legislation to prevent yet another Great Republican Depression.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • maplefish wrote...
    Bill Clinton, Barney Frank & Charlie Wrangel
    May 28, 2012 3:50 pm
    Blame these 3 morons for FORCING Banks to relax lending regulations so idiots making $5.00 an hour could buy $500, 000 homes and backing those loans wiith TAX PAYER DOLLARS ( Fanny May & Freddie Mac) ... As usual WrongWay...You are sadly ill-informed and equally STUPID!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • scuddrunner wrote...
    You are correct!
    May 28, 2012 6:35 pm
    To make matters worse B of A will be flooding the market with thousands and thousands of foreclosures around Oct, Nov this year. This is really going to effect the housing market.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Ron_Spins wrote...
    The Community Reinvestment Act
    May 28, 2012 8:49 pm
    http://en.wikipedia.org/wiki/Community_Reinvestment_Act (Democrat)(Jimmy Carter) (Bill Clinton)caused Liars loans so any one could get a home loan..no need to have a job or anything.Don't(blame bush) anymore...got it?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • ron prevost wrote...
    and the answer to why Obama does it is :
    May 29, 2012 4:46 am
    'well, Bush did it'. ... Whatever mistakes boy George made, Mr. Hope has had 3 1/2 years not to change. .. Solutions do NOT come from blame - but from vision. Unfortunately, Oz is just a screen.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • SickofSeattleite wrote...
    wow, who wrote this?
    May 27, 2012 7:50 am
    "As home values slowly increase and these homeowners continue to pay down their principal, they will surface again. . ." When will the $150,000 I lost on paper come back? When I am a great grand parent? Thanks greedy fanny Mae....they get the bailouts from Obama and I get negative equity in the form of a paper loss so it's okay know.... Obama says everything is okay so it must be.....tell me about all the food card fraud again.....tell me about my unemployed neighbors sucking off Govt.... all the people on disability for restless leg syndrome and ADD....please....America is so messed up. Make something up and the Govt pays you....Work and the Govt takes from you.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • William Lawn wrote...
    Tell me about bad decisions in home buying?
    May 27, 2012 7:08 pm
    Best time in 30 years to buy a rental. From people who made bad purchase decisions.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Realitycheck wrote...
    William you are a fool
    May 28, 2012 1:08 pm
    if you believe all these people made bad purchase decisions. I'll bet that 90% of those people were in a perfectly good position to buy, probably put twenty percent down. I did, and yet my house is $150K below it's top value. Nobody can rebound from that. And worse then that it makes people immobile because they can't sell an underwater house which means they can't take a new job opportunity that requires a move without walking away and ruining their credit. Why, because of bank greed and fraud. And Obama is as much to blame for this as was Bush, so don't even start to make this political, it is a simple matter of our government not going after the crooks that are bankrupting this country, and we all know why not.......ort do I need to explain that as well
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • maplefish wrote...
    Your "reality" is wrong
    May 28, 2012 4:29 pm
    Do a little research and you'll learn that it was he DEMOCRATS that relaxed the loan regulations...Fanny May & Freddie Mac are the cause of the real estate crash. You really make yourself look stupid when you blame Bush.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • messiah101 wrote...
    Realitycheck
    May 29, 2012 10:47 am
    Your attempt to tie Obama in to a mess that was left at his doorstep is weak.William Lawn was simply pointing out that one should be able to recognize something that is hugely overvalued and pass on purchasing it.Yes this was POLITICAL as regulations were relaxed or eliminated in order for this mess to have happened.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    Willie...you sound like an evil 1%er.
    May 28, 2012 6:27 pm
    Oh..yeah...that's right. Do as you say; not as you do.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • It's me! Ha ha! wrote...
    Thank you Comrade
    May 28, 2012 11:46 am
    for our "recovering" ObamaEconomy!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CH wrote...
    I want Willard behind the wheel . . . .
    May 28, 2012 4:57 pm
    that should add another 40% homeowners to go 'underwater'. Put on your rubbers.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • murr wrote...
    Just silly, all of it
    May 28, 2012 6:06 pm
    Waiting and wishing for some kind of goverment bail out. You deserve what you wish for. Keep being dependents, and keep being owned. Produce or go the easy way !!!! get owned.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    Who's fault?
    May 28, 2012 6:25 pm
    Gee...I wonder? The liberal theory of "everyone should own a home". Even when you have no income, education, job, career, future...yep...everyone. Hell, I bet even the moron CH could get a loan from Owebama and the Dim light bulbs.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    And maplefish...you are wrong.
    May 28, 2012 6:38 pm
    It's NOT the fault of the left. Willie said so...
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • longwayhome wrote...
    hpd
    May 28, 2012 8:33 pm
    Get off your high horse and admit that you will post a negative response to anything politically motivated against Democrats. This country is still recovering from the RE PUBLICAN caused downturn. If a person is upside sown on their mortgage, it happened during your party's watch. Obama has improved the odds for homeowners, without the help of the republicans which have tried to block almost everything he has proposed. Go to he@@, and take your ignorant friends with you.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • maplefish wrote...
    Wrong way
    May 28, 2012 8:45 pm
    Obama had a full Democratic Congress & Senate for nearly 3 years and didn't accomplish jackshit! He hasn't even passed a BUDGET in over 1000 days. You are a complete and total idiot to keep blaing the Repulians for the mess this country is in. Obama isn't qualified to be your manager at Burger King!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • It's me! Ha ha! wrote...
    LWH
    May 29, 2012 4:28 am
    We are not posting anything that is not the truth about your beloved regime and your Dear Leader. Our economy is far worse since Obama landed in the White House. This ObamaEconomy is not Bush's fault. These are the sad but true facts of who you allied yourself with.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Mike Rometer wrote...
    a home
    May 29, 2012 4:46 am
    is not a "right"--just like college--not everyone is suited nor should have a home or college--sorry to burst the liberal bubble of hope and rights to everything; it comes down to working, saving and bettering yourself with your own initiative and taking responsibility; no excuses, no handouts; saying "no" to living beyond one;s means; old non-sexxy advice, but still works; equal opportunity, not equal results;
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }