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local edition or ig i nat ion ANALYTICS Millions of Homes Move to Positive Equity S e c on da r y M a r k e t a na ly t ic s se r v ic i ng Recent data shows that the number of properties with negative equity declined in Q2. california // The number of mortgaged residential properties with negative equity fell more than five percentage points throughout the year's second quarter, CoreLogic reported. According to the company's analysis, approximately 2.5 million residential properties returned to a state of positive equity last quarter, bringing the total number to 41.5 million. Meanwhile, 7.1 million homes— or 14.5 percent of all residential properties with a mortgage— were still in negative equity, down from 9.6 million (19.7 percent) at the end of Q1 2013. The bulk of home equity during the quarter was concentrated at the high end of the market, with 91 percent of homes valued at greater than $200,000 having equity (compared to 80 percent of homes with values lower than that). The national aggregate value of negative equity was $428 billion at the end of Q2 compared to $576 billion the prior quarter, a decrease driven in large part by improving home prices, CoreLogic said. "Price appreciation obviously had a positive impact on home equity over the first half of 2013, especially the second quarter," said president and CEO Anand Nallathambi. "Despite the substantial decrease in negative equity, there's more ground left to gain with the 7.1 million U.S. residences that remain underwater." In actuality, there's far more ground than that to cover. Of the 41.5 million residential properties with positive equity, an estimated 10.3 million are "under-equitied," meaning they have less than 20 percent equity. Because of that, those borrowers 54 | The M Report may have a more difficult time obtaining new financing for their home due to underwriting constraints and may struggle paying the costs to get a new home. Meanwhile, 1.7 million properties had less than 5 percent equity, qualifying them as "nearnegative equity." According to CoreLogic, under-equitied mortgages accounted Equifax Improves Data on Credit The company has created a new product aimed at providing better credit insights. georgia // Equifax announced the availability of Equifax Dimensions, a new product created to deliver a more in-depth According to CoreLogic, underequitied mortgages accounted for 21.1 percent of all residential properties with a mortgage nationwide last quarter. much and where consumers are likely to spend, predict capacity to incur additional debt while staying current, and determine the "breaking point" of spending that will lead to default. "Equifax is constantly utilizing deeper, more meaningful analytics so that we can provide innovative solutions designed specifically to meet our customers' needs," said John Cullerton, SVP of product innovation and management for the Atlantabased company. "This new product is an example of one of those solutions—and a simple way to help our customers increase their bottom line, while still effectively taking care of the consumer." Connecticut Home Sales Inch Up in Q2 Growth is progressing at a snail's pace, but analysts are encouraged by the incremental movement. connecticut // The second for 21.1 percent of all residential properties with a mortgage nationwide last quarter. Nevada had the highest percentage of negative equity mortgages in Q2, at 36.4 percent. It was followed by Florida (31.5 percent), Arizona (24.7 percent), Michigan (22.5 percent), and Georgia, (20.7 percent). Together, those five states account for 34.9 percent of negative equity in the country. picture of past credit behavior to predict future trends. Users of the new solution can see up to two years' worth of detailed consumer credit activity, allowing them to make more precise lending decisions. Equifax Dimensions analyzes hundreds of payment characteristics to identify consumer patterns, enabling lenders and service providers to identify which consumers are most likely to open accounts, predict how quarter saw modest gains in home sales in Connecticut, according to the Warren Group. Second-quarter sales of singlefamily homes totaled 6,898, a nearly 1 percent increase over Q2 2012. In June alone, home sales were up 0.4 percent (the second straight month of increases) to a total of 2,602. According to the group, it was the best month for sales since last August, which saw 2,639 transactions. Year-to-date, home sales statewide were 10,947, down about 1 percent. "The housing market in Connecticut continues to show slow growth," said Warren Group CEO Timothy M. Warren Jr. "As long as mortgage rates and home prices don't spike too high, we'll see a very steady recovery year for the market in 2013." Year-over-year, home prices were up 5.6 percent in June to a statewide median of $283,000— the highest median price for any month since August 2008. The