CoreLogic data on states with the highest percentage of underwater homes.

MarketWatch D.C. bureau chief Steve Goldstein looks at new Fannie Mae data that may serve as insight into why less-than-normal numbers of people are listing their homes for sale, despite it being a pretty good time to sell.

The crux of the matter is Fannie Mae survey analysis that indicates that although less than 10% of homes with mortgages are underwater, as many as 27% of home mortgage borrowers believe they owe more on their loans than their home is worth.

Goldstein writes:

That perception may be one reason why so few homes actually are on the market. The National Association of Realtors on Monday reported that inventories fell another 2% in October, and remains well below historical levels when compared to the sales pace.

Read more >