First American CoreLogic says it has released the industry's first state-level assessment of negative equity estimates for all single-family residential properties in the U.S.
The data include nearly 42 million properties that have a first and/or second mortgage, which account for over 80% of all mortgages in the U.S. The first report looks at negative equity and near-negative equity as of September 30. First American CoreLogic plans to update the report on a quarterly basis.
According to the report, over 7.5 million mortgages – or 18% of all properties – with a mortgage were in a negative equity position as of the end of September. There are an additional 2.1 million mortgages that are approaching negative equity.
The distribution of negative equity is heavily skewed to a small number of states. Nevada led the nation with an estimated 48% negative equity share, and Michigan was second with 39%. Five other states have negative equity shares in excess of 20%: Florida (29%), Arizona (29%), California (27%), Georgia (23%) and Ohio (22%). Â
Source: First American CoreLogic