Top five states where mortgaged residential properties have negative equity are Nevada (19.0%), Florida (17.8%), Arizona (14.6%), Rhode Island (12.3%) and Maryland (12.1%).
PALM COAST, FL – December 15, 2015 – Florida ranks second among states where mortgaged residential properties have negative equity. The top five are Nevada (19.0%), Florida (17.8%), Arizona (14.6%), Rhode Island (12.3%) and Maryland (12.1%), according to CoreLogic’s Third Quarter 2015 Equity Report, released today.
“Homeowner equity is the largest source of wealth for many Americans. The rise in home prices, expected to be at least 5 percent in 2016, will continue to build wealth and confidence across America. As this process continues, it will provide support for the housing market and the broader economy throughout next year,” says Anand Nallathambi, president and CEP of CoreLogic.
Nationally, approximately 10.4 percent (4,100,000) of homes with a mortgage are underwater. If prices rise another 5 percent, an estimated 800,000 homes will move out of the negative equity category.
An additional 8,900,000 (17.6 percent) of the 46,300,000 homes with a mortgage are considered under-equitied, meaning that the total equity is less than 20 percent of the home’s value.