By Ashley Barker
Published April 17, 2014
Roughly 9.1 million U.S. residential properties, representing 17% of all properties with a mortgage, were “seriously underwater” during the first quarter of 2014, according to a report from RealtyTrac.
Properties are classified as seriously underwater when the combined loan amount is at least 25% higher than the property’s estimated market value.
During the first quarter of 2013, there were 9.3 million residential properties, or 19% , were seriously underwater.
Equity-rich properties — with at least 50% equity — grew to 9.9 million, representing 19% of all properties with a mortgage. That’s up from 9.1 million, or 18%, in the fourth quarter of 2013, RealtyTrac said.
An additional 8.5 million properties in the United States were on the verge of resurfacing in the first quarter, which means the property has between 10% negative equity and 10% positive equity.
“U.S. homeowners are continuing to recover equity lost during the Great Recession, but the pace of that recovering equity slowed in the first quarter, corresponding to slowing home price appreciation,” RealtyTrac Vice President Daren Blomquist said in a statement. “Slower price appreciation means the 9 million homeowners seriously underwater could still have a long road back to positive equity.”
In South Carolina, 94,540 properties, or 13% of all properties with a mortgage, were seriously underwater, the report said. 171,158 properties, or 23% of the market, were on the verge of resurfacing in the state.
Columbia was cited as a major metro area with a high percentage of resurfacing equity. Louisville, Ky., was ranked first with 37%; followed by Columbia at 28%; Colorado Springs, Colo., at 28%; Little Rock, Ark., at 28%; and Tulsa, Okla., at 27%.
Underwater and home equity data for select S.C. counties
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Total seriously underwater
% seriously underwater
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% resurfacing equity
Reach Ashley Barker at 843-849-3144 or @AshleyNBarker.