Buying a home is a significant milestone, and oftentimes a stressful decision — and some markets have it worse than others.
SmartAsset, which aims to provide “consumer-focused financial information and advice,” figured out the metro areas where residents owe more than their homes are worth. SmartAsset reports: “In some metro areas, there has been an uptick in homeowners owing more than their homes are worth. It’s important to pay attention to where these types of underwater mortgages are occurring because they are a clear indicator of market success in an area. In areas where the rates of underwater mortgages are high, it can spell big trouble for homeowners and could signal trouble for the housing market overall.”
So, where does Chicago fall on the list? Chicago-Naperville-Arlington Heights is No. 1 on SmartAsset’s Top 10 list of metros where people owe more than their homes are worth. Here’s what SmartAsset says about Chicago, in part:
“The housing market in the Illinois metro area of Chicago-Naperville-Arlington Heights was booming at the start of the pandemic. This led to a housing shortage and rapidly increasing home prices in the area, and stiff competition from buyers who had to make huge offers to be considered by sellers. In turn, there was a trend in which buyers borrowed huge amounts of money to purchase homes—and for lucky owners, a quick gain in equity as home prices surged upward. That swift uptick cooled earlier this year, though, leaving homeowners who bought at the peak of the price wars vulnerable to market declines.”
See the full report here.