Orlando Near Top For Upside Down Homes

According a report released this week by RealtyTrac, 36% of the homes in the four county metro Orlando area have mortgages that exceed the value of the property by 25%.  The statewide rate for such properties was 34% and the state with the most seriously underwater homes was Nevada at 38%.

Orlando real estate prices increased an average of 20% during the past year, but many homes have a ways to go before they reach positive equity.  Analysts still believe the increases in equity will result in an increase in inventory in 2014, with many homes that were in a negative equity situation, now swinging to the positive. 

What does this mean for the health of the Orlando real estate market?  To be close to the top of the nation in underwater mortgages indicates how bad the crash was and how far home prices fell.  20% appreciation is a very healthy number, though, and more indication recovery is underway.