Advertisement

More Tampa Bay borrowers gaining equity in their homes

 
Published Dec. 16, 2015

Almost 20 percent of Tampa Bay homeowners still owe more than their homes are worth, but rising values are reducing the number of underwater borrowers.

In the three months ended in September, 19.6 percent, or 117,867, of all bay area residential properties with mortgages were in negative equity, CoreLogic reported Tuesday. But that was a sharp improvement over the same quarter last year, when 25.6 percent of borrowers, or 122,723, were underwater.

Nationally, 8.1 percent of all homes with mortgages were in negative equity compared to 10.4 percent in the same quarter last year.

The increase in positive equity is good news for both the real estate market and the overall economy.

"Homeowner equity is the largest source of wealth for most Americans," said Anand Nallathambi, president and CEO of CoreLogic. "The rise in home prices, expected to be at least 5 percent in 2016, will continue to build wealth and confidence across America. As this process continues, it will provide support for the housing market and the broader economy throughout the year."

In the third quarter, Nevada had the highest percentage of residential properties in negative equity at 19 percent, followed by Florida (17.8 percent), Arizona (14.6 percent), Rhode Island (12.3 percent) and Maryland (12.1 percent.)

Texas had the highest percentage of homes with positive equity at 97.9 percent, followed by Alaska (97.7 percent), Hawaii (97.6 percent), Colorado (97.2 percent) and Montana (97.1 percent.)

The bulk of positive equity for homes with mortgages was at the higher end of the market, CoreLogic found. For example, 95 percent of homes valued at $200,000 or more have equity compared with 87 percent of homes valued at less than that.

Contact Susan Taylor Martin at smartin@tampabay.com or (727) 893-8642. Follow @susanskate.