40% of Homes underwater
The percentage of underwater Palm Beach County homes with mortgages was 36.6 percent in the first quarter of the year, the second quarter in a row to see a dip below 40 percent.
According to a report released this morning by the Irvine, Calif.-based CoreLogic, about 113,800 homeowners in Palm Beach County owed more on their mortgages than their homes were worth during the first three months of 2013.
That’s a nearly 10,000-home drop from the end of 2012 when 124,105 county homes were underwater.
The county’s highest underwater rate was measured in the third quarter of 2009 when 44.8 percent of homeowners owed more on their mortgage than their home was worth.
Still, statewide, Florida ranked second nationally for the highest rate of negative equity with 38.1 percent of all homes underwater.
Tampa and Miami ranked highest nationally among large metro areas for the percent of underwater homes at 44.1 percent and 40.7 percent, respectively.
CoreLogic Chief Economist Mark Fleming was mostly optimistic about increasing equity nationwide.
Nationally, 19.8 percent of all homes with a mortgage were underwater during the first quarter. That’s down from 21.7 percent at the end of 2012.
“The impressive home price gains of 2012 and the beginning of 2013 have had a big impact on the distribution of residential home equity,” Fleming said. “During the past year, 1.7 million borrowers nationwide have regained positive equity. We expect the pent-up supply that falling negative equity releases will moderate price gains in many of the fast-appreciating markets this spring.”
Nevada had the highest percentage of mortgaged properties in negative equity, followed by Florida at 38.1 percent. Other states with high negative equity were Michigan (32 percent), Arizona (31.3 percent) and Georgia (30.5 percent).
Michael Wagner Vero Beach, Fl Marketing Strategist