Recovery yes,out of the woods no.
As of September 2013, 22 percent of homeowners in the Golden State still remained underwater.Despite a whopping 25 percent year-over-year jump in the median sales price of a homes in California. That’s 1.5 million homeowners who still owe more on their mortgage than their home is worth. This down over 50 percent from where we were five years ago, according to real estate data firm PropertyRadar. An additional 420,000 homeowners had less than 10 percent equity in their homes, which means they are effectively underwater because closing costs are 6 to 10 percent of a home’s sale price. – See more at: http://www.inman.com/wire/nearly-1-in-4-california-homeowners-still-underwater/#sthash.h2ELs5CB.dpuf.