The economic crash at the end of the last decade left millions of homeowners owing more on their homes than they were worth, commonly known as being "underwater" on a home. But across the country, homeowners are starting to re-gain much-needed equity in their homes.
In 2013, nearly 4 million homes righted themselves and came back above water due to the massive appreciation in the past two years. But nearly 10-million homeowners aren't so lucky and are still experiencing negative equity, especially in high foreclosure states. In Las Vegas, approximately 35 percent of homeowners are still underwater. Other markets with similar negative equity rates are Atlanta and Chicago. Those figures aren't expected to improve much this year as 4 - 6 percent appreciation is predicted in 2014.
But Zillow's chief economist, Stan Humphries is encouraged. He says, "We've reached an important milestone as negative equity has fallen below 20-percent nationwide, which has helped free up marginally more inventory and contribute to further stabilization of the market."
Currently, negative equity average nationwide is about four times what is considered a healthy market.