Encinitas Realtor Linda Moore breaks down negative-equity findings nationally, in the state of California, and in Encinitas, where negative equity is the lowest in San Diego County.
CoreLogic is reporting that while an estimated 10.4 million homes remained underwater at the end of 2012, which was approximately 21.5% of all homes with mortgages, more than 1.7 million homes were able to get above water by the end of the year.
Nevada, Florida, Arizona, Georgia, and Michigan accounted for approximately one-third of negative equity in the United States with the percentage of underwater mortgaged properties ranging from 52.4% in Nevada to 31.9% in Michigan.
California ranked in the top 10 of states in terms of negative equity, hovering around 25%. Across San Diego County the number of people who were freed from negative equity increased, seeing the percentage of negative equity decrease from 31% in the third quarter of 2012 to 28% in the fourth quarter.
Encinitas real estate had the lowest negative-equity rates in the county at 10%, with other neighboring cities like Carmel Valley and La Jolla at 12%.
There is still concern that homes in the near-negative equity zone (accounting for 2.3 million homes in the US), could fall into negative equity if prices should decline. However, industry professionals continue to predict price increases throughout the year as the housing market and economy recover.