A recent report by CoreLogic states that the total of residential mortgages that are currently lower than their property’s value is approximately 45.9 million or about 91 percent of all mortgaged properties. CoreLogic is predicting that home prices will rise an additional 4.7 percent over the next year will mean another 800,000 home owners will regain positive equity by July 2016.
Analysts agree that sharply rising prices over the past three years, coupled with low housing stock, is primarily responsible for the improved equity percentages.
While 91 percent is an impressive percentage it does mean that the number of homes with negative equity is still high at 4.4 million. According to the report, 95 percent of homes valued at more than $200,000 have equity, compared with 87 percent of homes with a value less than $200,000.
Texas, Alaska, Hawaii, Montana and Colorado are the states with the highest percentage of mortgaged properties in positive equity.