Real Estate Values:
Fewer US Homes Underwater
As Prices Rise
As Real Estate Values Rise Nationwide,
Homeowners Gain Equity
There is no doubt that real estate values are rising nationwide. The rise can be attributed to high demand, smaller inventory, fewer REO properties with rock bottom pricing ... any number of influences. Whatever the cause, the rise in real estate values is having a good effect on many who have been "underwater" ... and are now rising above the foam.
Nationwide, real estate values rose enough in the second quarter to lift about 600,000 homeowners out of the negative equity swamp and into positive equity. This allows many to refinance, when that was impossible before.
Here is an informative article by Marilyn Kalfus in the Orange County Register:
Fewer U.S. homes underwater as prices rise
Marilyn Kalfus - "About 600,000 underwater borrowers hit positive equity in the second quarter, according to the report. That followed more than 700,000 in the first three months of the 2012..Some 22.3 percent of homeowners with a mortgage had negative equity at the end of June, down from 23.7 percent three months earlier." ... Orange County Register
Rising Real Estate Values Reduce Average Negative Equity Amounts
One of the things that's interesting to look at here is how the rise in real estate values is effecting the average amount of negative equity an "upsidedown" owner holds. Of the 6.6 million owners who have negative equity and have only one loan on their property, the average negative equity amount is now down to $51K, which is a significant improvement over last year.
Real Estate Values