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 #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
