An increasing number of homeowners in San Diego and nationwide are facing “negative equity” because of falling home prices coupled with low down payments, according to the latest Cotality Home Equity Report.
Irvine-based Cotality, the real estate data company formerly known as CoreLogic, said 0.6% of San Diego homeowners had negative equity in the third quarter, an increase of 0.14 percentage points over the past year.
Nationwide the average was higher at 2.2% of homeowners — a total of 1.24 million properties.
Negative equity — being “underwater” — is when you owe more on your mortgage than your home is currently worth.
“As the pace of home price growth slows and markets recalibrate from pandemic peaks, we’re seeing a clear shift in equity trends,” said Cotality Chief Economist Dr. Selma Hepp. “Negative equity is on the rise, driven in part by affordability challenges that have led many first-time and lower-income buyers to over-leverage through piggyback loans or minimal down payments.”
“While overall home equity remains elevated, recent purchasers with smaller down payments may now face negative equity,” she said.
Home prices have been falling in many parts of the country this year, including Florida and much of the West. The latest Case-Shiller Index showed San Diego home prices falling 0.9% in September — the fifth monthly decline.
As a result, homeowners across the United States have lost an average of $13,400 in equity over the past year. The top two states in equity loss were Florida ($37,400) and California ($32,500).
Cotality warned that the increase in properties with negative equity “is a trend that has been gaining steam and signals possible market difficulties ahead.”
Hence then, the article about more san diego homeowners face negative equity as house prices fall was published today ( ) and is available on Times of San Diego ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( More San Diego homeowners face negative equity as house prices fall )
Also on site :
- Coach of softball teams in San Bernardino, Orange counties accused of molesting player
- The Biggest Fitness Trends at CES 2026 (and What I Think About Them)
- Route 59 in Naperville closed after Tesla crashes, bursts into flames