PROVIDENCE – The number of residential properties in the Providence-New Bedford-Fall River metro area in negative equity fell to 60,394 in the second quarter of 2013 from 79,819 in the first quarter, according to a CoreLogic report released Tuesday.
Negative equity, also referred to as “underwater” or “upside down,” means that the borrower owes more on his mortgage than his home is worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
The second quarter figure for Providence-New Bedford-Fall River represents 17.3 percent of all residential properties in the metro area, a significant drop from the first quarter figure of 22.8 percent.
An additional 3.2 percent, or 11,318 residential properties, were in near negative equity for second quarter 2013 in the metro area, compared with 4.1 percent, or 14,361 properties, in the first quarter.
“Price appreciation obviously had a positive impact on home equity over the first half of 2013, especially the second quarter,” said Anand Nallathambi, president and CEO of Irvine, Calif.-based CoreLogic, in the report.
Nationally, 14.5 percent of all residential properties with a mortgage, or 7.1 million homes, were still in negative equity at the end of the second quarter, down from 19.7 percent, or 9.6 million homes, at the end of the first quarter.
The national aggregate value of negative equity was $428 billion at the end of the second quarter, compared with $576 billion at the end of the first quarter, a decrease of more than $148 billion.
Statewide, Rhode Island’s share of negative equity was the ninth largest in the country, at 18.8 percent, tied with Ohio. Massachusetts ranked 24th with 11.5 percent.
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