Did You Know: National Negative Equity Rates Down in Second Qtr
Negative equity remains concentrated in five states: Nevada (68%), followed by Arizona, Florida (46%), Michigan, and California.
Palm Coast, FL – September 9, 2010
By Selma Lewis, Research Economist: September 8, 2010
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According to recently released CoreLogic data, 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010.Foreclosures, rather than significant price appreciation, were the primary driver in the change in negative equity. An additional 2.4 million borrowers had less than five percent equity. Together, negative equity and near-negative equity mortgages accounted for nearly 28 percent of all residential properties with a mortgage nationwide.
Negative equity remains concentrated in five states: Nevada, which had the highest percentage negative equity with 68 percent of all of its mortgaged properties underwater, followed by Arizona (50 percent), Florida (46 percent), Michigan (38 percent) and California (33 percent).
The biggest declines in negative equity were concentrated in the hardest hit states. Nevada experienced an 11.8 percentage point decline in negative equity share, followed by California (-1.3), Florida (-1.3), and Arizona (-1.3). About two-thirds of all states experienced a decline in negative equity share. Since peaking in Q4 2009, the number of borrowers in a negative equity position has declined by about 350,000.
Copyright National Association of REALTORS®. Reprinted with permission.
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