Despite a rise in home values, metro Atlanta remains one of the top areas of the country where, for many, the value of the home is less than the amount of money owed on the mortgage, according to new report on “negative equity.”
CoreLogic’s first-quarter report shows 19.5 percent of metro homebuyers are underwater on their mortgages, presenting a challenge if they’re trying to sell their home without taking a major financial hit.
Metro Atlanta ranks fourth in the nation in homes that have negative equity, behind No. 1 Tampa, No. 2 Chicago and No. 3 Phoenix, and just ahead of No. 5 Warren, Mich., which rounded out the Top 5 metro areas.
Rising home values continue to help metro homeowners and others across the state pull out of negative equity territory. In the fourth quarter of 2012, for instance, 34 percent of mortgages in the state were underwater, according to CoreLogic.
In the first quarter of this year, 18 percent of the 1.64 million mortgages across the state were underwater.
March marked the 16th straight month of double-digit price growth across metro, according to the S&P Case-Shiller Home Price Index.
Georgia’s gradual housing recovery, with fewer foreclosures, a tightening supply of homes, rising prices and fewer underwater loans, reflects a national trend.
CoreLogic said 12.7 percent of all residential properties with a mortgage were in negative equity in the fourth quarter nationally, compared with 13.4 percent in the year-ago period.
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