Tag Archives: negative equity

312,000 Residential Properties Regain Their Equity

Photo courtesy of: http://www.jokeroo.com/pictures/funny/983393.html
Photo courtesy of: http://www.jokeroo.com/pictures/funny/983393.html

 

FRIDAY, JUNE 06, 2014
About 312,000 residential properties regained equity in the first quarter of this year, raising the total of residential properties with equity to more than 43 million, CoreLogic reported Thursday in its annual home equity report.

Still, as of the first quarter, about 6.3 million homes – or 12.7 percent – have negative equity compared to 6.6 million or 13.4 percent in the fourth quarter of 2013. Negative equity refers to borrowers who owe more on their mortgage than their homes are currently worth.

What’s more, of the 43 million residential properties who do have equity, about 10 million have less than 20 percent equity, an at-risk position to be in if home prices were to fall, according to CoreLogic’s report. About 20.6 percent of all residential properties are in what’s considered such an “under-equitied” position.

“Despite the massive improvement in prices and reduction in negative equity over the last few years, many borrowers still lack sufficient equity to move and purchase a home,” says Sam Khater, CoreLogic’s deputy chief economist. “One in five borrowers have less than 10 percent equity in their property, which is not enough to cover the down payment and additional costs associated with a conventional mortgage.”

But CoreLogic is projecting an additional rise in home prices of 5 percent over the next 12 months which is expected to lift another 1.2 million properties “out of the negative equity trap,” says Anand Nallathambi, president and CEO of CoreLogic.

CoreLogic’s report shows the following states have the highest percentage of all mortgaged properties in negative equity:

Nevada: 29.4%
Florida: 26.9%
Mississippi: 20.1%
Arizona: 20.1%
Illinois: 19.7%
Source: CoreLogic

 

Please help to keep this blog going
Let us Sell or help you buy your new home or land

John J. O’Dell Realtor® GRI
O’Dell Realty
(530) 263-1091
Email John

BRE#00669941

Enhanced by Zemanta

Home Owners Equity Rising Above Water

Jenga Style Homes Photo courtesy of Pleated-jeans.com
Jenga Style Homes Photo courtesy of Pleated-jeans.com

In the next 15 months, 8.3 million home owners — about 18 percent of home owners who have a mortgage — are expected to gain enough equity to be in a better position to sell their homes, according to RealtyTrac’s September report on home equity.

“Steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of homes for sale in the coming months,” says Daren Blomquist, vice president at RealtyTrac. “Home owners who already have ample equity are quickly building on that equity, while the 8.3 million homeowners on the fence with little or no equity are on track to regain enough equity to sell before 2015 if home prices continue to increase at the rate of 1.33 percent per month that they have since bottoming out in March 2012.

The 8.3 million of home owners have a range of 10 percent negative equity to 10 percent positive equity, according to RealtyTrac. Home owners with low equity may face challenges in selling a home due to the cost of the sale and having a down payment on a new home. As equity rises, more home owners are in the position to sell their home without having to resort such actions as a short sale.

The report also notes that one in four home owners in foreclosure also were found to have positive equity. Home owners with equity may have a better chance at selling their homes before letting the foreclosure process run its course, Blomquist says.

But that’s “assuming they realize they have equity and don’t miss the opportunity to leverage that equity,” Blomquist says. “Even home owners deeply underwater have reason for hope, with about 150,000 each month rising past the 25 percent negative equity milestone — although it will certainly take years rather than months before most of those homeowners have enough equity to sell other than via short sale.”

Source: National Association of Realtor©

Help us keep this blog going
Email or call today:

John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email

DRE# 00669941

Enhanced by Zemanta

More Home Owners Regain Long-Lost Equity

Photo credit: http://xaxor.com/funny-pics/funny-crazy-real-estate-signs.html
Photo credit: http://xaxor.com/funny-pics/funny-crazy-real-estate-signs.html

Rising home prices are helping to propel more home owners back into positive equity. About 850,000 residential properties returned to positive equity during the first quarter of 2013, according to new data released by CoreLogic. That brings the total to 1.7 million borrowers who have regained positive equity in the past year.

In total, 39 million residential properties now have positive equity.

“The negative equity burden continues to recede across the country thanks largely to rising home prices,” says Anand Nallathambi, president and CEO of CoreLogic.

By the end of the first quarter, 19.8 percent of all residential properties with a mortgage — or 19.7 million — still had negative equity. At the end of the fourth quarter of 2012, 10.5 million or 21.7 percent of residential properties were underwater.

The states with the highest percentage of negative equity properties are:

  • Nevada: 45.4% of the properties there are still underwater
  • Florida: 38.1% underwater
  • Michigan: 32% underwater

Please help out to keep this blog going
Let me sell or help you buy your new home or land

John J. O’Dell Realtor® GRI
O’Dell Realty
(530) 263-1091
Email John

DRE#00669941

Source: “CoreLogic: Nearly 1 million houses float back into positive equity,”

Enhanced by Zemanta

Many Mortgage Holders Underwater

In what could be another sign that the housing crisis is far from over, the percent of mortgage holders who are underwater on their homes continued to rise in the third quarter–and some say it could be another eight to 10 months before that trend turns around.

In the U.S., 23.2% of U.S. mortgage holders were underwater, owing more money than the house is worth. That’s up from 21.7% from a year ago, according to Q03 data out Wednesday from Zillow.com. Roughly 13.9 million homes now have negative equity. Many of these homes could end up in foreclosure should borrowers give up making payments on homes that aren’t worth what they owe—let alone building equity. (See “The Great Mortgage Mystery“)

In the latest report, the worst hit areas of the housing bust show small signs of improvement, while new locales saw growth in underwater real estate. In Miami, for example, 42% of homes have negative equity, compared to 45.1% in the third quarter 2009, according to Zillow. That’s in part because many of these underwater homes have been foreclosed on.

In San Francisco, the number of underwater homes has dropped from 24.9% to 20.2%, mainly due to stabilizing home values that are pulling more people out of negative equity, says Stan Humphries, Zillow’s chief economist. The median sales price of existing single-family homes in the San Francisco metropolitan area is up about 25% since last year, according to the National Association of Realtors.

Source: Wall Street Journal

Looking for real estate investments?
Call John J. O’Dell
Real Estate Broker
530-263-1091
DRE #00669941