Despite the sharp rebound in housing prices in Miami in recent years, 28.3 percent of mortgaged homes in the area were still underwater in the third quarter of 2014, according to CoreLogic.
For the area spanning Miami, Miami Beach and Kendall, the share of mortgaged homes with negative equity dipped 0.4 percentage points from the second quarter, when 28.7 percent were carrying more debt than their market value, the Irvine, Calif.-based data firm said.
While the share of upside-down mortgages in the Miami area remains quite high, it has come down significantly since the dark days of the real estate downturn. In the first quarter of 2010, for instance, 53.3 percent of the mortgaged homes in the Miami area were in negative equity.
Florida overall ranked No. 2 behind Nevada among states with the highest levels of negative equity with 23.8 percent of mortgaged homes in negative equity in the third quarter, CoreLogic said. Nevada ranked No. 1 with 25.4 percent of mortgaged homes owing more than they are worth.
Nationwide, 10.3 percent of mortgaged residences that were underwater in the third quarter of 2014, down from 10.9 percent in the second quarter, CoreLogic said.