Some 7.1 million residential homes in the US still facing negative equity: CoreLogic

Some 2.5 million residential properties in the United States have returned to a state of positive equity during the second quarter of 2013, knocking the national figure down from 9.6 million to 7.1 million homes with negative equity, according to CoreLogic. 

The total number of mortgaged residential properties with equity stands at 41.5 million.

Approximately 10.3 million residential properties have less than 20% equity, referred to as “under-equated”, which means owners may have a difficult time obtaining new financing for their homes due to financing constraints.

The national combined value of negative equity was US$428 billion at the end of the second quarter, compared to US$576 billion at the end of the first quarter of 2013 – a decrease of more than US$148 billon.

“Equity rebuilding continued in the second quarter of this year as the share of underwater mortgaged homes fell to 14.5 percent,” says Dr. Mark Fleming, chief economist of CoreLogic

“In just the first half of 2013 almost three and a half million homeowners have returned to positive equity, but the pace of improvement will likely slow as price appreciation moderates in the second half,” says Fleming.

Nevada has the highest percentage of mortgaged properties in negative equity at 36.4%, followed by Florida at 31.5% and Arizona at 24.7%.

Of the largest 25 metropolitan areas, Miami, Miami Beach and Kendall, Florida, has the highest amount of mortgaged properties in negative equity at 36.5%.

Nicola Trotman

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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