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The following statistics are provided by CoreLogic.*  Despite double dipping to their lowest levels since 2009, housing prices in the first quarter failed to drive up the percentage of homeowners who are underwater on their mortgages.  In fact, modest reductions in the number of homeowners who owe more on their mortgages than their homes are worth in three of the states hit hardest by foreclosures helped to slightly improve the national negative equity picture in the first quarter.

Some 10.9 million, or 22.7 percent, of all residential properties with a mortgage were in negative equity at the end of the first quarter of 2011, down slightly from 11.1 million, or 23.1 percent, in the fourth quarter.

An additional 2.4 million borrowers had less than five percent equity, referred to as near-negative equity, in the first quarter.  Together, negative equity and near-negative equity mortgages accounted for 27.7 percent of all residential properties with a mortgage nationwide.  

Nevada had the highest negative equity percentage with 63 percent of all mortgaged properties underwater, followed by Arizona (50 percent), Florida (46 percent), Michigan (36 percent) and California (31 percent). The negative equity share in the top 5 states was 39 percent, down from 40 percent in the fourth quarter.

Las Vegas led the nation with a 66 percent negative equity share, followed by Stockton (56 percent), Phoenix (55 percent), Modesto (55 percent) and Reno (54 percent).

“Many borrowers in negative equity are still able and willing to make their mortgage payments. Those in negative equity and impacted by an income shock of some kind, such as a job loss, divorce, or death, are much more likely to be at risk of foreclosure or a short sale. The current economic indicators point to slow yet positive economic growth, which will slowly reduce the risk of borrowers experiencing income shocks,” says Mark Fleming, chief economist with CoreLogic.

*CoreLogic offers comprehensive property and ownership data to the residential real estate industry.