Johnson City MSA negative equity, delinquent mortgage rates down, home price indexes up

JCThe number of Johnson City MSA residents underwater on their mortgages was down for the second straight quarter this year and both CoreLogic home price indexes have posted their eight straight monthly increase.

Zillow’s second quarter negative index, released late last week, shows 5,339 households with a mortgage that was move than the home’s value. That’s 564  fewer that during the second quarter last year.

The report also showed 145 households in the area with mortgages that were delinquent by 90 days of more, down 89 from Q2 2012.

In separate reports that affirm the slow, steady increase in home values, both CoreLogic’s Home Price Indexes for the three-county area were up again in July.

The all-sales index has been in positive territory since December, 2012 and the non-stressed sales index has been positive since November. That index has outperformed the all-sales index five times since last November. That’s a significant housing market recovery indicator since it reflects how home prices are competing against distressed sales.

As reported earlier, the second quarter Federal Housing Finance Administration Home Price Index for the Johnson City MSA was also up by 1.7% when compared to the second quarter of last year. The five-year HPI hasn’t broken into positive territory yet. Barring some unforeseen negatives in the third quarter of this year that metric should move into positive territory with the third quarter report.

The only metric showing a weaker price trend is the Northeast Tennessee Association of Realtors July Trends Report. It showed the average sales prive for a single-family, previously home in the three-county MSA was 15.4% lower than it was during July last year.

The only major negative working against continue housing market improvements is the labor sector. It has gone soft this year, but the pace of job losses in July showed that the pace is slowing. Much of those job losses have been in the government labor sector.

Related Stories

Job losses continue at slower place in Johnson City MSA during July 

Sequester taking a bite out of Tri-Cities labor market 

Best, worst July performance by area city housing markets 

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