Negative equity fell in the third quarter, with 28.2% of all US home owners with mortgages underwater, down from 30.9% in the previous quarter, according to the latest figures to be published.
It is the first that that the Zillow Negative Equity Report has fallen below 30% and is the biggest quarter on quarter drop in negative equity, since Zillow revised its method for determining negative equity in the first quarter of 2011.
Slightly more than 14 million home owners with a mortgage were in negative equity, or underwater, in the quarter, owing more on their mortgages than their homes are worth. That was down from 15.3 million in the second quarter.
The Zillow report says that much of the decline in negative equity can be attributed to US home values rising 1.3% in the third quarter compared to the second quarter, to a median value of $153,800.
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