According to Zillow, 4 million previous homeowners who were "underwater" got into the black in 2013 due to appreciating prices across most of the nation. There are 6.5 million homeowners still in the red on their homes, down substantially (almost 40%) from 10.5 million a year ago.

Tom: At this pace, it will only take a few years before a vast majority of homes are no longer "underwater". When homeowners owe more on their homes than its market value, they tend to not spend money on anything but necessities, and they rarely ever consider relocating.