(Calculated Risk) The WSJ reports on a new report from First American CoreLogic that estimates 48% of homeowners with a mortgage in Nevada owe more than their homes are worth. The WSJ reports that First American CoreLogic estimates 18% of homeowners with a mortgage nationwide are underwater.
Using the Census Bureau 2007 estimate of 51.6 million households with mortgages, 18% would be 9.3 homeowners with negative equity. This is less than the recent estimate from Moody's Economy.com of 12 million households underwater.
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This graph shows the percent of homeowners with mortgages underwater by state (data from First American CoreLogic via the WSJ)
Note: there is no data for Maine, Mississippi, North Dakota, South Dakota, Vermont, West Virginia and Wyoming.
It's interesting that the two worst states are Nevada and Michigan - one a bubble state, the other devastated by a poor economy. That pattern continues - everyone expects the bubble states of Arizona, Florida and California to be near the top of the list, and Ohio too because of the weak economy - but what about Arkansas, Iowa and even Texas?