Many Peabody Homes Are ‘Underwater’

Peabody has one of the highest percentage of homes with negative equity on the North Shore.

In numbers published by The Boston Globe and supplied by real estate website Zillow, 10.3% of Peabody homes has more money owed on the mortgage than what the property is worth.

That figure of homes “underwater” is below the 11.5% average across Eastern Massachusetts, but ranked the third highest on the North Shore – only behind Lynn (24%) and Salem (13.9%).

Other nearby communities have lower percentages, including Danvers (8.3%), Lynnfield (5.4%), Swampscott (9.1%) and North Reading (5.8%).

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.” 

Read more and find the interactive Boston Globe map.