The number of home owners underwater on their mortgage—owing more than their home is currently worth—continues to drop, but “sand states” still account for the highest number of borrowers facing negative equity.
According to the National Association of Realtors, 22 percent of all residential properties with a mortgage—or about 10.7 million homeowners—were underwater by the end of the third quarter for 2012, according to CoreLogic data. From September 2011 to September 2012, 1.4 million homeowners had moved from negative equity to positive equity.
Rising home prices are pushing more Americans above water, as they once again see equity in their homes after five years of a downward housing market.
The following five states had the highest number of underwater mortgages and accounted for 34 percent of the total amount of negative equity in the entire country:
- Nevada: 56.9% properties were in negative equity
- Florida: 42.1%
- Arizona: 38.6%
- Georgia: 35.6%
- Michigan: 32%
Here in Forsyth County, we saw the percentage of transactions that were Short Sales drop from 43 percent in the first quarter to 26 percent in the 4th quarter. As prices continue to experience modest increases, more borrowers will shift from negative equity to positive equity.
Editor's Note: Tim Hopkins is a licensed realtor since 2001 and blogger on Cumming Patch.
