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YouTubeHere is a graphical version of positive/negative home equity levels in Central Ohio. Click the link to view the chart.
http://columbus.bizjournals.com/columbus/stories/2010/02/22/story5.html
Source: Business First Columbus/Nielsen Claritas
Columbus Underground Messageboard » General Columbus Discussion » Development
Home Equity Levels in Central Ohio
[16 posts] [9 contributors]
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dru
IV
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Interesting graphic. I was looking for the thread about a month or so ago from NBC4i about home values by zip code. That one showed 43215 and others in a very positive light. However, the thread also talked about how using zip codes are fairly useless for such comparisons. They simply cover too much varied terrain.
If you look at 43201 for instance, that covers portions of Harrison West, Vic Village, Italian Village, campus, Weinland Park, Milo-Grogan, etc... Did people pay too much for new builds over in Harrison West, were there too many zero-down condos in IV or were there a bunch of bad sub-prime loans peddled to and signed by residents in WP or MG? I imagine there are some of each, but the analysis needs more depth than just pulling zip-codes.
Posted 2 years ago # -
goldenidea
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If you look at 43201 for instance, that covers portions of Harrison West, Vic Village, Italian Village, campus, Weinland Park, Milo-Grogan, etc... Did people pay too much for new builds over in Harrison West, were there too many zero-down condos in IV or were there a bunch of bad sub-prime loans peddled to and signed by residents in WP or MG?
I'm not a realtor with access to the full MLS database, but I watch the WP & MG markets pretty closely. Subprimes seem to be the big problem in MG, but from casual observation that neighborhood had above-average vacancy and negative-equity problems even before the meltdown. WP also had some subprime problems, but I suspect a greater number of funny financing deals that inevitably imploded. Also in WP, a fairly large rental operator got over-extended and eventually went bankrupt. His foreclosures alone have accounted for perhaps 25-30 below-market/negative-equity sales over the past year or two in WP.
Posted 2 years ago # -
rory
NW Short North
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goldenidea wrote >>
If you look at 43201 for instance, that covers portions of Harrison West, Vic Village, Italian Village, campus, Weinland Park, Milo-Grogan, etc... Did people pay too much for new builds over in Harrison West, were there too many zero-down condos in IV or were there a bunch of bad sub-prime loans peddled to and signed by residents in WP or MG?
I'm not a realtor with access to the full MLS database, but I watch the WP & MG markets pretty closely. Subprimes seem to be the big problem in MG, but from casual observation that neighborhood had above-average vacancy and negative-equity problems even before the meltdown. WP also had some subprime problems, but I suspect a greater number of funny financing deals that inevitably imploded. Also in WP, a fairly large rental operator got over-extended and eventually went bankrupt. His foreclosures alone have accounted for perhaps 25-30 below-market/negative-equity sales over the past year or two in WP.I'd agree that sub-prime had almost nothing to do with WP. The over-extended large rental operator and Donald Green's mortgage fraud operation did more to knock down values than anything. It's impressive that it really only takes two people to skew it that much. Especially after Donald Green and the fraudulent appraisals its hard to determine value of a house there. Throw in some bank owned property from a distressed lender from nine states away and it's super confusing. I've seen the same house valued between $5000 and $179,000 in the span of two years. Who knows what anything is worth there?
Posted 2 years ago # -
lisathewaitress
SoHud
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I'm curious how these compare to zillow. does anyone know? I'm thinking about a re-fi but i think my value might have gone down thanks to the fact that my neighbor sold their house for next to nothing.
the zillow value is depressing. But then again, it has never seemed accurate. especially here in SoHud, where half the houses are rentals, some are sold as post-rental dumps, some are perfectly decent, and some are great. We have a wide variety of prices here compared to, say, a cul de sac in dublin where all the houses are very similar.
Posted 2 years ago # -
agtw31
columbus
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rory
NW Short North
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agtw31 wrote >>
rory wrote >>
I'd agree that sub-prime had almost nothing to do with WP.mortgage brokers,appraisers,and title cos. made huge money off of property in that part of town.
who do you think took those all those blatantly stretched appraisals? a bank??Just one or two appraisers were involved. The banks got the short end of the stick
Posted 2 years ago # -
byJody
Rural NW Columbus
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The more I thought about this, the more I think a major factor is missing...age of loan.
Home Equity is defined as House Value less Mortgage Balance, but does this chart factor in age of loan?
For instance, Worthington fared pretty well in the chart, but it being an older community, you would expect to have people who are further along in paying off a 30 year mortgage.
Example: Say they bought the home for $150,000 15 years ago, paid it down to $100,000. In the same period the house appraised value grew to $200,000, but has dropped to $175,000 in the last 2 years.
So, though the amount of home equity has fallen from 100k to 75k, the chart would show this as having positive equity, since they still have 75k in equity. (these numbers are just for demonstration and not necessarily indicative of the balance on a 1/2 paid mortgage. Plus this assumes they did not refinance or take a home equity loan)
Contrast that with a 4 year old loan. Say they bought that house near the top at $200K, then had the $25,000 drop in value. It would immediately be reflected as negative equity because they have not had the benefit of time to partially pay down the loan.
Also, the older communities have the offset of people who may have paid off their mortgage and have 100% equity. That seems like it would really help the overall statistics.
Maybe I am missing something, but looking at the chart solely on equity amounts seems to leave out the major factor of time.
ETA: I left out this source link for the original chart because it is only available to subscribers.
Posted 2 years ago # -
agtw31
columbus
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rory wrote >>
agtw31 wrote >>
rory wrote >>
I'd agree that sub-prime had almost nothing to do with WP.mortgage brokers,appraisers,and title cos. made huge money off of property in that part of town.
who do you think took those all those blatantly stretched appraisals? a bank??Just one or two appraisers were involved. The banks got the short end of the stick
Donald Green mortgage fraudall you know about are 1 or 2 appraisers and flippers that got caught.
there were a lot more that didn't.
every house refi'd in WP was done through subprime,because no bank was dumb enough to take a 125k appraisal on a 30k dump.
Posted 2 years ago # -
jeff_r
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That's a good point Jody. Obviously the size of the down payment and the drop in property values are the other big factors in the equity/mortgage formula.
It's likely that home buyers in Worthington put more money down at purchase. It's also likely that the value of their homes didn't drop as dramatically as other areas in central Ohio. I guess it shouldn't be that surprising their ratio is better.
Posted 2 years ago # -
byJody
Rural NW Columbus
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A couple links on home value:
Chase Estimator: https://mortgage.chase.com/pages/other/home_value_estimator.jsp
Article about zillow:
Zillow: Owners misguided on home valuesAlso a note about the Chase calculator. I suspect that it is just pulling loan balance. We sold our house in November and the Chase value has gone up $15,000 in 3 months. Basically it changed from our loan balance to the new owner's loan balance. So, according to them, the less you owe, the less your home is worth.
Posted 2 years ago # -
LBOWACC
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Wow according to that website the neighborhood i live in average selling price is 15,000 (which is believable), but the average selling price in the zip code i grew up in is only 50,000. That struck me as low considering my parents bought there home there in like 1979 for like 80,000.
Posted 2 years ago # -
agtw31
columbus
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jeff_r wrote >>
That's a good point Jody. Obviously the size of the down payment and the drop in property values are the other big factors in the equity/mortgage formula.
It's likely that home buyers in Worthington put more money down at purchase. It's also likely that the value of their homes didn't drop as dramatically as other areas in central Ohio. I guess it shouldn't be that surprising their ratio is better.better credit scores get better quality loans
that means there is no knucklehead 100% financing
which gives you no equity for at least 10 years.Posted 2 years ago #
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