Almost a third fewer metro Denver homes were valued at less than what is owed on their mortgages during the second quarter than were underwater in the first quarter, , a property, analytics and service provider reported Thursday.
About 4.8 percent, or 30,653, of all metro Denver residential properties were underwater in the second quarter of 2014 compared with
6.7 percent, or 42,389 properties the first quarter.
In addition, 2 percent, or 12,971, residential properties were at near-negative equity — or valued at less than 5 percent more than what is owed on them — in the second quarter, compared with 2.9 percent, or 18,144 in the first quarter.
Statewide 63,198 properties, or 5.4 percent, were underwater in the second quarter and 27,857, or 2.4 percent, were at near-negative equity.
Negative equity, or being underwater, can occur because of a decline in value, an increase in mortgage debt or a combination of both. CoreLogic has warned that properties that are at near-negative equity are at risk should home prices fall.
According to CoreLogic, nationwide, 5.3 million properties, or 10.7 percent of all residential properties with a mortgage, remained underwater as of the second quarter of 2014.
But CoreLogic said that nearly 950,000 homes returned to positive equity in the second quarter of 2014, bringing the total number of mortgaged residential properties with equity in the U.S. to more than 44 million.
CoreLogic CEO Anand Nallathambi said many homeowners across the country are seeing the equity value in their homes grow, which bolsters the economy as a whole.
“With more and more borrowers regaining equity, we expect homeownership to become an increasingly attractive option for many who have remained on the sidelines in the aftermath of the great recession,” Nallathambi said in a statement. “This should prove more opportunities to people to sell their homes, purchase a different home or refinance an existing mortgage.”
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or twitter.com/howardpankratz
