Tide of underwater homes recedes in NYC area

Source: CoreLogic
Source: CoreLogic

The number of homes in the New York area that were underwater fell to 97,262 in the second quarter of 2013, a 24 percent drop from 128,236 in the previous quarter. In the New York-White Plains-Wayne region, 8.5 percent of all residential properties with a mortgage were underwater in the second quarter.

That drop mirrors the national trend: Across the U.S., the number of underwater homes fell to 7.1 million, a 26 percent drop from 9.6 million in the previous quarter.

Meanwhile, the number of mortgaged homes with equity — meaning the value of the home exceeds the value of the mortgage — stood at 41.5 million. But 14.5 percent were still in negative equity, down from 19.7 percent in the previous quarter. Some 2.5 million homes returned to a state of positive equity during the second quarter of 2013.

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The improvement, according to a report from CoreLogic, was largely driven by an upswing in home prices.

Source: CoreLogic, Q2 -- 2013

Source: CoreLogic, Q2 — 2013

“Price appreciation obviously had a positive impact on home equity over the first half of 2013, especially the second quarter,” Anand Nallathambi, president and CEO of CoreLogic, said in a release. “Despite the substantial decrease in negative equity, there’s more ground left to gain with the 7.1 million U.S. residences that remain underwater.”

Nationwide, Nevada had the highest percentage of underwater mortgages, followed by Florida, Arizona and Michigan. — Julie Strickland