The Most “Underwater” City in America is…

November 17, 2008

Most Underwater Area in America Mountain House, California. This news is so big that even the NY Times carried a recent story on the unfortunate circumstances facing Mountain House residents. The article states that close to 90 percent of Mountain House homeowners owe more on their mortgages than their houses are worth. This is the highest percentage in the country.

Mountain House is clearly a microcosm of this widespread problem. Many families located in this area and people across the nation are adjusting their spending habits due to the depressing economy and the burden of paying a high mortgage.

“Most people pay very little attention to what their equity stake is if they can make the mortgage,” said First American CoreLogic’s chief economist, Mark Fleming. “They think it’s a bummer if the value has gone down, but they are rooted in their house. When my house is valued at 50 percent less than it was, does this begin to challenge the way I’m going to behave?”

If Mountain House and the impact on the surrounding area are any indication, the answer is yes. Cutbacks by residents are having a dramatic effect on the sustainability of many small business owners. According to the NY Times article, strip malls are tenantless, business revenue is down, advertising in the local newspaper and luxury magazines are sluggish and owners are cutting employees.

As an experienced and active Realtor in the Tri-Valley area, I have suggestions and strategies to offer homeowners in need of counsel on their real estate decisions in our current challenging market. Please contact me if you are interested in learning more about what you can do as a local homeowner and to discuss your options in the sale and/or purchase of a home. Also, I am well-versed in paths to preserve your home ownership, including guidance on your current mortgage to help you stay in your home if that is your goal. Please feel encouraged to contact me today!

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