There is little doubt that home sales are on the mend in Middle Tennessee. But the prices of many area houses have a long way to go before they can be called healthy. As evidence, Zillow has updated its negative-equity numbers, which paint an ugly picture for parts of the Nashville region.

In a good stretch of the Interstate 24 corridor, more than half of homeowners own more on their mortgage than their house is worth. Also worth noting is that many of the downtown ZIP codes home to newish condominium developments sport negative equity ratios of 40 percent and higher.

HT: Ritholtz