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Since the Pandemic Housing Boom fizzled out in the summer of 2022, some overheated parts of the country—particularly in the West, Southwest, and Southeast—have experienced home-price declines from their peak (see this map).

While many of these markets have seen only modest drops, a few metro areas, such as Punta Gorda, Florida, and Austin have undergone what I’d consider “material” home-price corrections, falling 18.6% and 23.0% respectively from their peaks.

These regional home-price declines raise the question: How many mortgage borrowers are actually “underwater”—meaning their house is worth less than their outstanding mortgage balance—right now?

To find out, ResiClub

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