Fewer homes are seriously underwater, according to RealtyTrac. But underwater homes are still a problem in some places.
The housing research group defines “seriously underwater” as owing more than 25 percent than the home is worth. More than 1 in 6 homeowners with mortgages were seriously underwater in the second quarter this year.
That’s the lowest level of seriously underwater homes since RealtyTrac began reporting negative equity at the beginning of 2012. In the hardest-hit markets, at least 1 in 5 homes are seriously underwater.
“Many of the properties that are seriously underwater are in a deep negative equity hole that will take some time to dig out of,” says Daren Blomquist, vice president at RealtyTrac.
Here, in ascending order, are the top 10 states for underwater homes.
Arizona
Percentage of homes that are underwater
Q2 2014: 20 percent
Q2 2013: 32 percent
Q2 2012: 46 percent
Maryland
Percentage of homes that are underwater
Q2 2014: 21 percent
Q2 2013: 25 percent
Q2 2012: 26 percent
Missouri
Percentage of homes that are underwater
Q2 2014: 22 percent
Q2 2013: 27 percent
Q2 2012: 34 percent
Connecticut
Percentage of homes that are underwater
Q2 2014: 24 percent
Q2 2013: 16 percent
Q2 2012: 13 percent
Ohio
Percentage of homes that are underwater
Q2 2014: 26 percent
Q2 2013: 32 percent
Q2 2012: 29 percent
Michigan
Percentage of homes that are underwater
Q2 2014: 27 percent
Q2 2013: 37 percent
Q2 2012: 53 percent
Rhode Island
Percentage of homes that are underwater
Q2 2014: 29 percent
Q2 2013: 24 percent
Q2 2012: 22 percent
Illinois
Percentage of homes that are underwater
Q2 2014: 30 percent
Q2 2013: 35 percent
Q2 2012: 37 percent
Florida
Percentage of homes that are underwater
Q2 2014: 30 percent
Q2 2013: 41 percent
Q2 2012: 45 percent
Nevada
Percentage of homes that are underwater
Q2 2014: 32 percent
Q2 2013: 52 percent
Q2 2012: 62 percent
See if your state ranks among the top 10 states for foreclosure filings.
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