U.S. Homeowners With Negative Equity Drop as Prices Rise - Bloomberg

U.S. Homeowners With Negative Equity Drop as Prices Rise - Bloomberg
Underwater homeowners have a higher foreclosure rate and a harder time relocating, because they would lose money in a sale, Humphries said. The problem is greatest among borrowers under age 40, about 48 percent of whom owe more than their homes are worth. That’s slowing the housing recovery by shrinking the inventory for first-time buyers and reducing demand for move-up homes, Humphries said.
Total negative equity was $1.15 trillion in the U.S. at the end of the second quarter, a $42 billion decline from three months earlier, according to Zillow.

My home value according to Zillow went up $13K...I feel richer already.. /snark/