There has been much progress in the negative equity crisis that erupted after the housing market meltdown.
The latest report on “underwater” borrowers — this time from CoreLogic — found that 2.5 million more residential properties returned to positive equity during the second quarter of 2013.
The CoreLogic analysis shows that 7.1 million homes, or 14.5 percent of all residential properties with a mortgage, were still in negative equity at the end of the second quarter of 2013.
That’s down from 9.6 million homes, or 19.7 percent of all residential properties with a mortgage, at the end of the first quarter of 2013.
But the percentages are little comfort to these 7.1 million households, and an additional 10.3 million households which have less than 20 percent equity and are likely not able to upsize or downsize into other homes.
With an average balance of $217,000, negative-equity borrowers are underwater $51,000 on average.
An additional 2.8 million upside-down borrowers, or 39 percent, hold both first and second liens. The average balance for this group is $292,000. The average underwater amount is $75,000.
Of the largest 25 metropolitan areas, Miami-Miami Beach-Kendall, Florida had the highest percentage of mortgaged properties in negative equity at 36.5 percent, followed by Tampa-St. Petersburg-Clearwater, Florida (33.8 percent); Phoenix-Mesa-Glendale, Arizona (25.6 percent); Riverside-San Bernardino-Ontario, California (24.8 percent); and Warren-Troy-Farmington Hills, Mich. (24.3 percent).
Here are some other striking stats from CoreLogic:
- The average loan-to-value ratio for all mortgaged homes is 62.5 percent
- Of residential properties underwater, 1.3 million, or 2.6 percent, have a loan-to-value ratio of 100 percent to 105 percent.
- Another 2.8 million,or 5.8 percent, have a loan-to-value ratio greater than 125 percent.
- In between, with 105 percent to 125 percent loan to value, are 3 million residential properties, or 6.1 percent.
- The average amount underwater for all properties with a mortgage is 32.6 percent.