Posts Tagged ‘positive equity’

More Underwater Homes are Beginning to Float again

September 26th, 2014 Comments off

housing_recovery__globest.com__creditAccording to, the latest CoreLogic report indicates 946,000 properties regained positive equity in the second quarter of 2014, increasing borrower equity year over year by an estimated $1 trillion. The number of homes that remain in negative equity has fallen from 7.2 million, or 14.9 percent of all homes with a residential mortgage, in Q2 2013, to 5.3 million homes, or 10.7 percent in the second quarter 2014, a drop of nearly two million in one year. In dollars, this equates to negative equity declining $432.9 billion in 12 months. The 44 million residential properties with positive equity include nine million, about 19 percent, that have less than 20 percent equity, while 1.3 million have under five percent equity. Anand Nallathambi, president and CEO of CoreLogic, tells MHProNews, “With more and more borrowers regaining equity, we expect homeownership to become an increasingly attractive option for many who have remained on the sidelines in the aftermath of the great recession. This should provide more opportunities for people to sell their homes, purchase a different home or refinance an existing mortgage.” ##

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More Underwater Homes Return to Buoyancy in Q1 2014

June 5th, 2014 Comments off

CoreLogic reports 312,000 more homes returned to positive equity in the first quarter of 2014, indicating 6.3 million homes remained underwater as of Q1 2014, compared to 6.6 million homes at the end of Q4, 2013, according to In aggregate, the value of negative equity totaled $383.7 billion as of March 31, 2014 versus $400 billion at the end of the fourth quarter, 2013, as MHProNews has learned. Anand Nallathambi, president and CEO of CoreLogic, says, “Prices continue to rise across most of the country and significantly fewer borrowers are underwater today compared to last year. An additional rise in home prices of 5 percent, which we are projecting will occur over the next 12 months, will lift another 1.2 million properties out of the negative equity trap.” ##

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More Homes Lifted out of Negative Equity in Q3

December 18th, 2013 Comments off

During Q3 2013 an additional 791,000 U. S. homes returned to positive equity as home values continue to rise, bringing the number of mortgaged residential properties with equity to 42.6 million. The number of homes remaining in negative equity fell from 7.2 million at the end of the second quarter to 6.4 million at the end of the third quarter 2013, accounting for
13 percent of all homes mortgaged. “Rising home prices continued to help homeowners regain their lost equity in the third quarter of 2013,” said Mark Fleming, chief economist for CoreLogic. “Fewer than 7 million homeowners are underwater, with a total mortgage debt of $1.6 trillion. Negative equity will decline even further in the coming quarters as the housing market continues to improve.” As informs MHProNews, ten million of the homes in the positive equity column have under 20 percent equity and may have a difficult time finding new financing.

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Slowing Home Appreciation Means Positive Equity Distant for Underwater Borrowers

November 23rd, 2013 Comments off

According to the analytic firm Zillow, 10.8 million homeowners still owe more than their house is worth, a drop of over 4.9 million from the high point of Q1 2012, which represents a 21 percent decline when the negative equity peak was 31.4 percent of all homeowners. In Q2 2013 the negative equity rate hit 23.8 percent, representing the largest quarter-over-quarter drop since Zillow began following the trail of negative equity in Q2 2011, according to nationalmortgagenews. Stan Humphries, the firm’s chief economist, says, “Rising home prices and a greater willingness among lenders to engage in short sales have both contributed substantially to the significant decline in negative equity this quarter (Q3 2013). We should feel good that we’re moving in the right direction and at a fast clip.” If home price values fall in 2014 as predicted by Zillow and others, the pace of negative equity improvement will slow, falling to only 18.8 percent. As MHProNews has learned, home values that increase by Zillow’s prediction of 3.8 percent next year would require a homeowner underwater by 20 percent five years to reach positive equity. Humphries says, “Negative equity must be considered part of the new normal in the housing market.”

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