Overall, homeowners are slowing gaining equity back in their house. During 2012 the amount of homeowners with negative equity in their homes fell from 31.1% to 27.5%, meaning 1.9 million homeowners are no longer underwater on their mortgages. However, there are still 13.8 million homeowners struggling with negative equity. It is predicted that percentage of homeowners with negative equity will fall to 25.5%, so and additional 1 million homeowners will no longer be underwater on their mortgages come the end of 2013. While this decrease can be largely attributed to home values increasing nationwide, there are still many homeowners, that even with rapid appreciation still have quite a ways to go due to purchasing at the peak of the housing bubble.
The above graph depicts the mortgage loan to value distribution for homeowners, comparing Quarter 4 in 2011 and 2012. Although many people still haven’t crossed the bold line into positive equity, you can tell that it is moving in the right direction because all of the red bars (representing negative equity) are smaller in 2012 and that the black bars (representing positive equity) are larger in 2012.