The number of residential properties with negative equity continued to decline in the third quarter, according to CoreLogic.
About 4.1 million, or 8.1% of all mortgaged properties, had negative equity, as of Sept. 30, CoreLogic said in a Tuesday news release. That's down from 4.3 million, or 8.7% in the second quarter, and down from 5.2 million, or 10.4% in the third quarter of 2014.
Negative equity refers to homeowners who are "underwater" on their mortgages, meaning they owe more on the mortgages than their home is worth.
The total national aggregate value of negative-equity properties at the end of the third quarter was $301 billion, down from $309.1 billion on a quarterly basis and down from $341 billion on a yearly basis.
"Home price growth continued to lift borrower equity positions and increase the number of borrowers with sufficient equity to participate in the mortgage market," Frank Nothaft, CoreLogic's chief economist, said in the release.
Nevada had the highest proportion of homes in negative equity in the second quarter, with 19% of mortgaged properties. Florida was second at 17.8%.
Texas had the highest number of homes in positive equity at 97.9%, followed by Alaska at 97.7%.
