Underwater Tri-Cities mortgage rates down, but some community rates still high


The negative equity in the Tri-Cities ended 2013 with a seven quarter low. The rate measures the number of households where the mortgage is more than the value of the home dipped to 13.6% in the four-county MSA and 14% in the three-county Johnson City MSA.

The national negative equity rate dipped to 19.4% of all homeowners with a mortgage, according to the fourth quarter Zillow® Negative Equity Report.

Negative equity has fallen for seven consecutive quarters as home values have risen. The national negative equity rate fell from 27.5% of all homeowners with a mortgage as of the end of the fourth quarter of 2012.

But while negative equity is slowly but surely receding, a number of factors will help ensure it remains a factor in the market for years to come. The “effective” negative equity rate, which includes those homeowners with a mortgage with 20% or less equity in their homes, remains stubbornly high. More than one-third of homeowners with a mortgage (37.6%) are effectively underwater, unable to sell their homes for enough profit to comfortably meet expenses related to listing a home and purchasing a new one.

Community rates the Johnson City MSA
Watauga – 21.4%
Elizabethton – 19.1%
Hampton – 16.1%
Erwin – 15.7%
Roan Mountain – 14.6%
Johnson City – 13.3%
Jonesborough – 12.0%
Limestone – 11.8%
Telford – 10.7%
Flag Pond – 9.8%
Fall Branch – 9.7%
Unicoi – 8.8%
Community rates in the Kingsport-Bristol MSA
Surgoinsville – 21.1%
Rogersville – 18.1%
Mooresburg – 17.7%
Weber City – 17.4%
Church Hill – 16.6%
Bulls Gap – 16.6%
Mount Carmel – 14.9%
Bristol TN – 14.8%
Kingsport – 14.0%
Gate City – 13.7%
Mendota – 13.5%
Bluff City – 13.5%
Blountville – 12.8%
Nickelsville – 11.6%
Piney Flats – 11.5%
Bristol VA – 10.9%
Meadowview – 10.8%
Abingdon – 10.5%
Dungannon – 10.0%
Fort Blackmore – 10.0%
Damascus – 8.6%
Glade Spring – 8.6%
 © Don Fenley

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