With home prices steadily rising, thousands of Sacramento homeowners came back above water in the second quarter of 2013, according to online real estate market tracker Zillow.
In a report issued Thursday, Zillow said 31.5 percent of Sacramento-area homes were mortgaged for more than they were worth in the second quarter. That compares to nearly 42 percent at the end of 2012.
Zillow predicts that an additional 41,781 local households will regain positive equity in the next 12 months.
Negative equity is receding nationwide, but some markets are still significantly more distressed than Sacramentos. In Las Vegas, for instance, 48.4 percent of homes are in a negative equity situation. In Atlanta, the number is 44 percent.
Many households that have regained equity still dont have enough -- considered 20 percent -- to afford selling their house and buying a new one. Zillow said 50.2 percent of households in the Sacramento area lack that cushion.
"The frustratingly slow pace of negative equity declines in the face of such robust home value appreciation is a direct result of the fact that many people in the hardest-hit markets are underwater by an enormous amount, Zillow Chief Economist Dr. Stan Humphries said in a release. Because of this, negative equity will be a factor in these markets for years to come, constraining the supply of homes for sale and keeping people out of the market who might otherwise get involved."
Call The Bees Mary Lynne Vellinga, (916) 321-1094.