IRVINE, Calif.–While home ownership rates are rising and the economy has improved, a significant number of U.S. homes remain underwater.
According to RealtyTrac’s Year-End 2015 U.S. Home Equity & Underwater Report, at year-end 2015 there were 6.4 million U.S. properties “seriously” underwater — where the combined loan amount secured by the property is at least 25% higher than the property’s estimated market value — representing 11.5% of all properties with a mortgage.
“Over the past three and a half years, the number of seriously underwater properties has been cut in half, but we continue to deal with a long tail of seriously underwater properties, and it will likely be another five years at least before most of those remaining underwater properties move into positive equity territory,” said Daren Blomquist, vice president at RealtyTrac, in a statement. “At the other end of the spectrum, the growing number of equity rich properties reflects a moribund move-up market and restrained leveraging of home equity by U.S. homeowners.”