Miami leads the nation with the highest percentage of mortgaged homes with negative equity of any major metropolitan area, though the amount continues to decline, a newly released study shows.
Of all homes with mortgages in the Miami-Miami Beach-Kendall area, 64,328 or 14.7 percent were underwater at the end of the second quarter, according to CoreLogic. That’s down from 80,822 or 18.4 percent, at the end of the second quarter of 2016 and 71,330 or 16.3 percent at the end of the first quarter of 2017. Underwater, or negative equity, means borrowers owe more on their mortgages than their homes are worth.
Las Vegas came in second after Miami with 12.2 percent of mortgaged homes underwater, followed by the Tampa area with 10.2 percent; the Chicago area with 10.8 percent; the Washington, D.C. area with 7.2 percent; and the New York area with 5.8 percent.
Nationwide, homeowners with mortgages saw their equity increase by 10.6 percent in the second quarter, year-over-year, representing a gain of $766 billion, according to CoreLogic.
Home prices have been rising nationwide, spurring the drop in negative equity. In Miami-Dade, home prices have risen for nearly six years.
According to figures released by the Miami Association of Realtors on Wednesday, the median price of a Miami-Dade single-family home in August was $337,500, up 12.5 percent from a year ago. For condos, the median price rose 4.7 percent, year-over-year, to $225,000.
From the first quarter to the second quarter of this year, the total number of mortgaged residential properties with negative equity across the country declined by 10 percent to 2.8 million homes, or 5.4 percent of all mortgaged properties. Year over year, negative equity decreased 21.9 percent.
Negative equity peaked at 26 percent of mortgaged residential properties in the second quarter of 2009, CoreLogic’s data shows.
The national aggregate value of negative equity was $284.4 billion at the end of the second quarter, down year-over-year by 0.2 percent.