Though Chicagoland’s housing market has made notable strides in the last couple of years, the problem of negative equity lingers on.
Though the Chicagoland housing market has made quite a bit of progress in the last year, nearly a quarter of mortgaged properties remain in negative equity, according to the second quarter Equity Report from CoreLogic.
In total, 23.1 percent of mortgaged properties in Chicagoland are in negative equity, with an additional 4.1 percent in near negative equity.
Nationally, though, the news was more positive, with home price growth in the second quarter lifting 2.5 million residences into positive equity; but again, 7.1 million homes remain in negative equity, and with home price growth expected to slow in the coming months, the pace of improvement will likely decrease as well.
“Equity rebuilding continued in the second quarter as the share of underwater mortgaged homes fell to 14.5 percent,” said Mark Fleming, the chief economist for CoreLogic. “In just the first half of the year, almost three and a half million homeowners have gained positive equity, but the pace of improvement will likely slow as price appreciation moderates in the second half.”
But how does Chicagoland compare not only with the national averages, but other major metropolitan markets as well? See our infographic below for some invaluable perspective (note: see our earlier post for the raw numbers).