Columbus #15 in Top 40 Cities in danger of a housing crash, says Go Banking Rates

Local News
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In a new report on GoBankingRates.com by Andrew DePietro, Columbus was named the 15th most likely city at risk of a housing crash in a nationwide Top 40.

According to the report, which ranked 40 cities in the United States that are in danger of a housing crash, Columbus was not only #15, it was the highest ranked in the state of Georgia, with Macon coming in at #17.

In the listing for Columbus, the report says that 22.2 percent of mortgages in the city are “underwater,” while the median home value is at $94,200.

This means that 22.2 percent of mortgages in Columbus have hoome purchase loans with higher principals than the free-market value of the home, and the homeowners may not have any equity available for credit to hold against their homes.

“Columbus has a higher proportion of homes that are underwater on their mortgage” than Macon, wrote DePietro. “On top of that, Columbus also has a higher delinquency rate, 2.1 percent versus only 1.5 percent in Macon and 1.1 percent for the U.S. overall.”

A higher delinquency rate in Columbus versus Macon or the U.S. overall means that just over two percent of homeowners with mortgages in Columbus are making their payments late to loans or income taxes, which can affect their ability to open a credit card, take out a loan on a car, or can lower their credit score.

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