Nearly
800,000 homes returned to a state of positive equity during the third
quarter—leaving about 6.4 million underwater, according to the
latest data fromCoreLogic.
The
real estate analytics and services provider released on Tuesday a
new analysis of
the nation’s mortgaged homes, showing an increase of 791,000 in the
number of properties with positive equity. As of the end of Q3, there
were 42.6 million properties in the United States that were above
water, CoreLogic reported.
The
increase in equity brought the share of underwater properties down to
about 13 percent from 14.7 percent in the second quarter.
Of
all the states, Nevada held the highest percentage of underwater
properties last quarter, reporting a negative equity rate of nearly
one-third (32.2 percent).
Florida
took the second spot with a rate of 28.8 percent, followed by Arizona
(22.5 percent), Ohio (18.0 percent), and Georgia (17.8 percent).
Together,
the top five states accounted for about 36.4 percent of negative
equity in the country.
“Rising
home prices continued to help homeowners regain their lost equity in
the third quarter of 2013,” said Mark Fleming, chief economist for
CoreLogic. “Fewer than 7 million homeowners are underwater, with a
total mortgage debt of $1.6 trillion.”
Fleming
said he expects negative equity to decline further in the coming
quarters as housing conditions keep improving.
The
numbers indicate a little more complexity in the market, however. Of
the 42.6 million residential properties in positive equity, CoreLogic
estimates 10 million have less than 20 percent equity, and more than
1.5 million are at less than 5 percent equity.
These
“under-equitied” borrowers may have a more difficult time
obtaining new financing for their homes, and those closer to the
“waterline” are at risk of falling back under should home prices
fall, CoreLogic explained.
For more information contact
Jerry Gusman
The Gusman Group
(888) 213-4208
Jerryggroup@aol.com
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