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A recent report as well as article from John Rebchook's Inside Real Estate News reported that 1 of 5 homeowners in Colorado are underwater. Almost one out of every five home owners in Colorado owes more on their mortgage than their house is worth, according to a national report by CoreLogic, a real estate data firm. The report shows that 19.6 percent of the homes in Colorado with a mortgage have negative equity. In total, more than 221,000 homes in Colorado are underwater, according to the firm. Overall, that ranks Colorado as No. 13 in the nation. In Nevada, 66.5 percent of the homes with mortgages are underwater. The Colorado housing market, however, is better than the national average of 22.6 percent of the homes being underwater.

Many agree that negative equity is hurting our economy. In Rebchook's story, Mark Fleming, the chief economist with CoreLogic, agrees:

“Negative equity is a primary factor holding back the housing market and broader economy,” Fleming said. “The good news is that negative equity is slowly declining (nationwide), but the bad news is that price declines are accelerating, which may put a stop to or reverse the recent improvement in negative equity.”

In addition many Colorado homeowners are on the border of being under water.

The CoreLogic report said that 8.1 percent of the homes in Colorado also are in “near negative equity,” which means that they are within 5 percent of being without equity. The national average for near negative equity is 5 percent.

For the rest of the article including opinions by more real estate professionals read the full story from Inside Real Estate News

Other Colorado facts from the CoreLogic report:
-Of the 1.125 mortgages in Colorado, 221,097 have negative equity.
-Another 91,187 have near negative equity.
-The total property value of homes with mortgages is $301.3 billion, or 2.37 percent of the $12.7 trillion in total property value for the nation.
-Outstanding mortgage debt in Colorado is $217.1 billion, 2.45 percent of the nation’s $8.85 trillion in debt.
-Net homeowner equity in Colorado is $84.17 billion, 2.18 percent of the $3.86 trillion for the nation.
-The average loan to value ratio in Colorado is 72 percent, compared with the national average of 70 percent.

If you are a homeowner and are considering selling your Colorado home it is best to discuss with a local real estate agent in your Colorado community for advice. A local broker will be able to share the recent comparable home sale prices in your neighborhood. If you decide to list your home for sale an 8z agent can show you how your home can get more exposure by listing with 8z and COhomefinder.com.