A slow down in home price appreciation is affecting the pace of home equity recovery in Fresno and other cities nationwide, according to a report from RealtyTrac.
In Fresno County, 44,399 borrowers representing 24% of all mortgage loans, seriously owed more than the value of their homes during the second quarter of the year, the online housing data company said.
That’s a slight decrease from the first quarter of the year when 25% of all loans or 45,985 borrowers were seriously underwater on their home.
A year ago at the same time time, 36% of all borrowers owed more than the value of their homes. By the end of the year only 27% were underwater.
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“Home price appreciation has slowed in the last few months in many of the markets with the most underwater homes,” said Daren Blomquist, vice president. “For instance, annual home price appreciation in California was at 16% in May 2014 compared to a high of 31% in July and August of 2013.”
The latest numbers from the California Association of Realtors show only a 14% annual increase in Fresno's home price in June compared to a high of 23% last July.
“Many of the properties that are seriously underwater are in a deep negative equity hole that will take some time to dig out of,” Blomquist said.