WASHINGTON, D.C. – June 25, 2012 – (RealEstateRama) — A newly released survey shows that more than half of all U.S. homes with a mortgage are underwater or owe more on their homes than the current value of their property. The study, which was conducted by Housing Predictor.com is the strongest indicator yet that efforts made by the Obama administration are doing little to aid U.S. homeowners in the worst housing downturn since the Great Depression.
Some 54% of those surveyed said their homes are underwater on their mortgages. Other surveys, including a poll conducted by Zillow researchers at the end of March have found an increasing number of homeowners underwater. The survey covered urban centers in the U.S. and showed that nearly one-out-of-three homeowners were underwater.
The higher Housing Predictor survey means than more than 27 million homeowners are underwater. The housing market has almost $4 trillion in negative equity, according to Federal Reserve Bank economist William Emmons of St. Louis. Emmons says it would take $3.7 trillion to get homeowners on a level playing field with mortgage debt.
The resounding survey figures are being released despite improvements in many areas of the country, with housing markets in 70 U.S. cities either improving or forecast to improve by the end of the year. Cities in the Mid-West, including Kansas and Nebraska and many areas in especially hard hit markets are already witnessing home value increases, including Miami and Tampa, Florida.
Housing Predictor regularly surveys consumers on issues closely related to the real estate industry, monitors and issues forecasts on more than 230 U.S. cities housing markets and offers the latest mortgage rates and real estate news.