Homeowners in Merced ranked at the top of nationwide list

Tools

Homeowners in Merced ranked at the top of nationwide list

By Preston Phillips

A study out of USA Today shows 91% of homes purchased in Merced last year are now worth less, than the money owed on them.

The city of Merced is tied at 91% with Stockton-Lodi.

Realtors in Merced say one reason is because there were just too many homes built there.

But they say don't worry; the market will come back around.

Sue first has lived in the city of Merced since July of last year, that's when she purchased this home on El Capitan Avenue.

Sue First, Merced homeowner: "I thought well I plan to live and die here, so I wasn’t looking at the short term, I was more focused on the long-term."

That's why first says she's not upset with the fact that she now owes more on her house than what it's actually worth, $30,000 more.

But she's not alone.

A new study by zillow.com says 91 percent of those who purchased a home in 2007, now owe more than their home is worth.

According to the study, the City of Merced has the highest percentage in the country, tied with Stockton-Lodi.

According to Data Quick, an online research firm, at this time last year, the median price for a home in the City of Merced was $286,000 today, the median price has decreased by more than $100,000.

Now experts say what some who are struggling large mortgages are doing is selling their home and leasing it back from the buyer, which many times is a family member or friend.

But the Merced County Association of Realtors says avoid it.

They say its a transaction that could lead to serious consequences as its many times considered to be loan fraud.

Realtors say what it really comes down to is patience, because they say the market will eventually come back around.

Zillow.com also listed three other cities in USA Today.

Ranked below Merced and Stockton came Modesto at 85%, Las Vegas at 83% and the Riverside, San Bernardino, Ontario area at 81%.

Click on the video link to watch Preston Phillips’ live report.

Add a comment

Name:

Comment: 500 Characters Left

Comments are moderated and will not appear on this story until after they have been reviewed and deemed appropriate for posting.

KSEE 24 NEWS and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.
Icon
Current Temp 66 °F
Fair
Wind : From the Northwest at 10 MPH
Humidity : 63 %
Pressure : 29.88" (1011.6 mb)
More Weather

AP Video

On Demand

Stock Quotes

What's On TonightFull Schedule

8:00
Summer Olympics
Local Business Dir

Poll

Which team will win the scramble?

  • Anthony and Lauren
  • Alexan and Larry