Home Equity Values to Drop another 3-5% in 2010

According to the Salt Lake Board Executive Committee article sent to Realtors in Utah, it is noted that “More Americans and Utahns are finding they owe more on their mortgages than what their homes are worth,” according to a new report by First American CoreLogic.

The article goes on to say that in Utah 21.1 percent of all residential mortgages are now considered in a negative equity position as compared to 24% of all U.S. residential properties.

It seems that the negativity continues to be heaviest in five states: Nevada (70%); Arizona (51%); Florida (48%); Michigan (39%); and California (35%).

All of this negativity across the nation is a direct result of the pre-foreclosure activity, according to this report. “Once negative equity exceeds 25%, or the mortgage balance is $70,000 higher than the current property values, owners begin to default with the same propensity as investors.”

If you are thinking about selling your home it is very important that the listing price right. In Utah and according to a report commissioned by the Salt Lake Board, home prices in Salt Lake County will continue to fall another 3-5 percent this year.