Local home-price increases have led to an increasing number of Colorado Springs homeowners having positive equity in their properties, according to a recent negative equity report from CoreLogic, a research and analysis firm.
During the third quarter of 2012, 19.4 percent or 29,794 of all homeowners with a mortgage owed more on their home than the current market value. That was a drop from 19.9 percent or 30,854 properties in the second quarter. Another 9.4 percent were in near-negative equity both quarters, but the real numbers fell slightly.
The improvement was in keeping with national trends, where about 100,000 borrowers reached a state of positive equity in the third quarter.
Year-to date, 1.4 million borrowers moved from negative home equity to positive in September, according to CoreLogic.
Nationally, 26.8 percent of residential borrowers had negative equity in the third quarter of 2012.
More than half – 56.9 percent – of borrowers in Nevada had negative equity in the third quarter. In Florida, 42.1 percent and in Arizona, 38.6 percent of borrowers were underwater.
The average underwater American homeowner borrowed $214,000 on a home and owes $49,000 more than the house is worth.