More than 8% of Danvers 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, 8.3% of Danvers homes are “underwater.”
That figure is below the 11.5% average across Eastern Massachusetts and better than nearby North Shore communities, such as Lynn (24%), Salem (13.9%), Peabody (10.3%) and Swampscott (9.1%).
Other nearby communities have lower percentages, including Lynnfield (5.4%), North Reading (5.8%), Middleton (6.3%), Topsfield (6.3%), Beverly (7.6) and Wenham (5.7%).
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.”