Home Owners Stand to Recapture More Equity in 2014
The number of underwater homes continues to slip, with 791,000 properties regaining equity during the third quarter, CoreLogic reports.
Currently, about 13 percent of all homes with a mortgage — or 6.4 million — remain in negative equity compared to 14.7 percent — or 7.2 million — at the end of the second quarter.
An estimated 42.6 million homes in the U.S. have positive equity. About 20 percent– or 10 million — of those homes, however, have less than 20 percent of equity or what is considered “under-equitied,” according to CoreLogic.
What’s more, about 1.5 million properties have less than 5 percent and are considered near-negative equity. They are the most at risk if prices happen to fall, CoreLogic reports.
The following states have the highest levels of negative equity and account for 36.4 percent of all the negative equity in the country:
- Nevada: 32.2% of properties have negative equity
- Florida: 28.8%
- Arizona: 22.5%
- Ohio: 18%
- Georgia: 17.8%
The majority of the homes that have positive equity are in the high-end housing market. Ninety-two percent of homes valued at more than $200,000 have equity compared to 82 percent of homes values at less than $200,000, CoreLogic found.
“We should see a further rebound in consumer confidence and economic growth in 2014 as more homeowners escape the negative equity trap,” says Anand Nallathambi, president and CEO of CoreLogic. “Home price appreciation has helped more than 3 million property owners regain equity since the first quarter of 2013.”