More underwater homes than ever are now showing positive equity in the Portland, Oregon area. A real estate data firm known as Corelogic reports that 8.1 percent of Portland-area homes were under water in the second quarter of 2013, as compared to 12.2 percent during the first quarter. Similar decreases were reported nationwide, with 14.5 percent of all homes across the country now showing negative equity.

One reason for the increase in home values is the fact that foreclosure rates are on the decline. CNN Money claims that foreclosure filings during August 2013 were the lowest in nearly eight years. They credit rising home prices and fewer underwater borrowers for the fact that foreclosure rates are on the decline across the country. That’s because underwater borrowers are at a higher risk of foreclosure should they suffer an undue financial hardship while occupying their property.

The number of foreclosures peaked in September 2010, and the market has seen steady decreases since that time. During the month of August, there was a slight increase in foreclosures over July; however, when compared to figures from August 2011, there was a 25% decrease noted. This number is also around 60% lower than the highest numbers recorded since the housing market crashed around eight years ago.

Even though property values have increased, many people still have very little equity available in their homes. Approximately 10.3 million homeowners have less than 20 percent equity, which essentially makes them unable to buy a new home as a result. These homeowners may be stuck for now, but if home prices continue to rise, they could be able to sell in only a short while. Basic laws of supply and demand would then lead to even higher home prices, because these individuals would also be able to purchase a new home rather than holding onto the one they have.