Greater Boston homeowners are not as deep underwater as they were a quarter ago, according to the second quarter Zillow Negative Equity Report.
Locally, negative equity fell in the second quarter to 19.6 percent from 22 percent in the first quarter of 2012. Nationally, negative equity also declined in the second quarter, with 30.9 percent of U.S. homeowners with mortgages — or 15.3 million — underwater. That was down from 31.4 percent of homeowners with mortgages, or 15.7 million, underwater last quarter.
According to the report, there are 160,243 homes in negative equity in Boston’s metro. The cumulative amount of negative equity is $14.1 billion dollars, according to Seattle-based Zillow (Nasdaq: Z).
Other Greater Boston highlights from the report.
• The 90-day delinquency rate for all mortgage homes is 7.5 percent, which is below the national rate of 9.2 percent.
• Of homes that are in negative equity, 51.3 percent are underwater by 20 percent or less.
• Nearly half (48 percent) of all borrowers under the age of 40 are underwater on their mortgages. However, younger borrowers are less likely than older populations to be delinquent on their mortgages, according to the report.
“Rising home values in the second quarter caused a decline in the number of underwater borrowers, but young homeowners continue to be disproportionately affected by negative equity,” said Zillow Chief Economist Dr. Stan Humphries, in a statement. “We hear about tight inventory in many markets, and it’s clear where this is coming from. Negative equity is trapping young people in their homes, preventing them from selling. These homes are likely the very starter homes potential first-time homebuyers are seeking.”
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