WSJ Says 11% of Portland Metro Homes Bought in Last 5 Years Are Underwater.

WSJ says that new study concludes that 1 in 6 of all homes in U.S. are underwater (home is worth less now than total debt).

HERE is link to WSJ Flash graphic that shows data for Portland and several other metro areas for loans over the last 5 years. (Look for "Cities in Reverse" heading within graphic).Only good news is that 11% underwater % for loans in last 5 years for Portland metro is a LOT less than all other metro areas included in graphic, (Phoenix underwater % for buyers in last 5 years is 40%+, Las Vegas and Detroit 50%+).

Related Seattle PI story HERE.

Comment: As someone who bought a home in Portland at height of earlier condo boom in 1980, I have some experience in being underwater for several years. Only saving grace for me is that I had an ARM loan, whose rate continued to decline as interest rates went down from peak inflation---15% when I bought my home. As interest dropped, my mortgage payment went down as fast, if not faster, than my value. ARM rates today will not decline with same speed or direction, so owners today faced with different economic choice than mine.