Nearly 7% of Woburn homes have negative equity, which means there is more money owed on the mortgage than what the property is worth.
In numbers published by The Boston Globe and supplied by real estate website Zillow, 6.8% of Woburn homes are “underwater.”
That figure is better than the 11.5% average of homes across Eastern Massachusetts, but lags behind surrounding communities: Stoneham (6.6%), Winchester (3.9%), Burlington (4%), Lexington (3.3%), Wilmington (4.7%) and Reading (4.1%).
The closest communities with higher percentages are Malden (12.6%), North Andover (10.8%) and Peabody (10.3%). Lynn has a whopping 24% of homes underwater.
Overall, Forbes reported that nearly 19% or 9.7 million American households are underwater.
“The unfortunate reality is that housing markets look to be swimming with underwater borrowers for years to come,” said Zillow Chief Economist Dr. Stan Humphries. “It’s hard to overstate just how much of a drag on the housing market negative equity really is, especially at the lower end of the market, which represents those homes typically most affordable for first-time buyers. Negative equity constrains inventory, which helps drive home values higher, which in turn makes those homes that are available that much less affordable.”