The aggregate value of negative equity nationwide was $338 billion atrnthe end of Q3 compared to $348.2 billion in Q2. rnOn a year-over-year basis, the value of negative equity declined from $403.2rnbillion in Q3 2013, representing a decrease of 16.2 percent in 12 months.  </p

However, many homeowners with equity are not yet out of the woods.  CoreLogic estimates that 1.3 million of themrnhave less than 5 percent equity in their homes and could sink back underwaterrnif home prices fall.  These near-negativernborrowers are among about 9.4 million or 19 percent who are under-equitied,rnhaving loan-to-value rations over 80 percent. rnThese under-equitied borrowers could have a difficult time refinancingrnor buying a new home after selling the existing one because of lack of a downrnpayment.  </p

“Nationally, the negative equity share is down over threernpercentage points over the past year. Declines were concentrated in a handfulrnof states, such as Nevada, Georgia, Michigan and Florida,” said Sam Khater, deputyrnchief economist for CoreLogic. “Forecasted house price appreciation of aboutrnfive percent over the next year suggests that negative equity should be atrnabout 8 percent a year from now, still above average, but approaching thernpre-crisis level.”</p

 Nevada continues to have the highest percentage ofrnunderwater homes at 25.4 percent followed by Florida (23.8 percent), Arizonarn(19 percent), Rhode Island (14.8 percent), and Illinois.  These top five states together account for nearlyrnone-third of all negative equity in the United States. </p

CoreLogic said two states failed to report data forrninclusion in the report, South Dakota and Wyoming

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