Nearly 200,000 homes returned to a state of positive equity during the fourth quarter of 2012, bringing the total number of properties transitioned from negative to positive equity for the year to 1.7 million, analytics firm CoreLogic reported March 19 in its Negative Equity Report.
The report revealed that 10.4 million, or 21.5 percent, of all U.S. residential properties with a mortgage remained underwater at the end of the fourth quarter. That figure was down from 10.6 million properties, or 22 percent, reported by CoreLogic at the end of the third quarter.
“The scourge of negative equity continues to recede across the country” Anand Nallathambi, president and chief executive officer of CoreLogic, said in a news release. “There is certainly more to do but with fewer borrowers underwater, the fundamentals underpinning the housing market will continue to strengthen. The trend toward more homeowners moving back into positive equity territory should continue in 2013.”
The states with the highest percentage of properties still in negative equity are Nevada (52.4 percent), Florida (40.2 percent), Arizona (34.9 percent), Georgia (33.8 percent) and Michigan (31.9 percent). Combined, these states account for 32.7 percent of the nation’s negative equity.
Read CoreLogic’s Negative Equity Report.