The data was released Tuesday by research firm CoreLogic Inc. (NASDAQ: CLGX).
The aggregate value of negative equity fell by $33.7 billion in the third quarter to a U.S. total of $397 billion, split almost evenly between first mortgages and first liens with home equity loans. According to CoreLogic, if home prices rise by 5%, another 1.2 million homes will no longer be underwater on their mortgages.
Nearly 10 million properties have positive equity below 20%, and 3.2% had less than 5% positive equity at the end of the third quarter.
CoreLogic’s CEO noted:
We should see a further rebound in consumer confidence and economic growth in 2014 as more homeowners escape the negative equity trap. Home price appreciation has helped more than 3 million property owners regain equity since the first quarter of 2013.
The five metropolitan areas with the highest percentage of properties with negative equity are Orlando-Kissimmee-Sanford, Fla., (32.3%); Tampa-St. Pete-Clearwater, Fla., (30.1%); Phoenix-Mesa-Glendale, Ariz., (23.2%); Riverside-San Bernardino-Ontario, Calif., (20.8%); and Chicago-Naperville-Arlington Heights, Ill. (20.5%).
The five with the highest percentage in positive equity are Houston (95.8%); Dallas (95.3%); Anaheim-Santa Ana-Irvine, Calif., (94.6%); Portland-Vancouver-Hillsboro, Ore., (93.4%); and Seattle (92.7%).
The five states with the highest percentages of homes with positive equity are Alaska (96.1%), Texas (96.1%), Montana (95.8%), North Dakota (95.7%) and Wyoming (95.4%). The five states with the highest percentage of homes with negative equity are Nevada (32.2%), Florida (28.8%), Arizona (22.5%), Ohio (18%) and Georgia (17.8%).
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.