The RealtyTrac report found 13.8 percent of residential properties in the state were seriously underwater, a decline from a year ago.
The share of "seriously underwater" properties in New Jersey declined from a year ago, according to a new report, but more than 240,000 homes still fell into that category in the third quarter of this year.
Residents owed at least 25 percent over what what their home is worth on 13.8 percent of all residential properties with a mortgage in New Jersey, the report from Irvine, Calif.-based housing firm RealtyTrac found. That's down from 14.6 percent in the previous quarter and 15.9 percent a year ago.
But the share of seriously underwater homeowners in New Jersey remains above the national average.
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The more than 6.9 million homes that were seriously underwater nationwide in the third quarter of this year represent 12.7 percent of all residential properties with a mortgage, according to the report. That share has declined from 13.3 percent in the previous quarter and 15 percent a year ago.
Nevada, Florida and Illinois had the largest share of seriously underwater homes among the states.
Daren Blomquist, vice president at RealtyTrac, attributed the national drop in seriously underwater homeowners to a recent uptick in homes sales volume and average home sales prices.
The RealtyTrac report also analyzed the number of properties that were equity rich, meaning they had at least 50 percent equity. The share of homes in that category also fell in the third quarter of this year, which Blomquist said is evidence that more of those homeowners are "leveraging their equity through a refinance, move-up sale or by completely cashing out of the housing market."
Some 19.2 percent of properties were equity rich in the third quarter of 2015, down from 19.6 percent in the second quarter of 2015 and 20.1 percent a year ago.
In New Jersey, 20.8 percent of homeowners were equity rich, down from 21.1 percent in the previous quarter and 21.6 percent a year go.
At the local level, Atlantic County had the largest share of seriously underwater homes in New Jersey, according to the RealtyTrac data, and Cape May County had the greatest share of equity rich homes in the third quarter of 2015.
Erin O'Neill may be reached at eoneill@njadvancemedia.com. Follow her on Twitter @LedgerErin. Find NJ.com on Facebook.
