PROVIDENCE – The share of Rhode Island homes with negative equity fell to 3.9% in the first quarter, a decline from 6.1% in the same period a year ago, Corelogic said Thursday.
A mortgaged home in negative equity, or when the value of a mortgage is greater than the value of the home, is known as an “underwater” asset.
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Mortgaged homes in Rhode Island gained an average of $13,331 in equity year over year, the report said.
The national negative equity rate was 3.4% in the first quarter, with homes gaining an average of $9,341 in equity over the year.
“The pandemic recession will likely lead to price declines in many areas during the next year and weaken home equity gains,” said Frank Nothaft, chief economist for CoreLogic. “However, price declines will be far less than those experienced during the Great Recession, when the national CoreLogic Home Price Index fell 33% peak-to-trough. Our latest forecast shows the national index to have a peak-to-trough decline of 1.5%.”
New England negative equity rates in the first quarter:
- Connecticut: 7.1%, with a gain of $6,238 year over year
- Massachusetts: 3.2% with an average gain of $15,535 over the year
- New Hampshire: 3.5%, with an average gain of $9,902 year over year
- Neither Maine or Vermont data was available in the report
The full report may be viewed online but may require free registration.
