Almost $1M Homes Return to Positive Equity

During the first quarter of 2013, approximately 850,000 more homes have regained positive equity according to Core Logic.  This is exciting news for homeowners across the country and an incentive to buyers who have been waiting to purchase.

 

Reportedly, we now have 39 million homes with positive equity and the negative equity burden is continuing to recede across the country due to rising home prices.  

 

Before we get too excited, we need to understand that the housing recovery is still far below when home prices peaked, but tight housing supply in many areas coupled with continued demand for single family homes should help close the gap.

 

Meanwhile nearly 97 million or about 20% of homes with mortgages were still reported with negative equity.  This figure is drastically down, however, and borrowers have good reason to feel hopeful that their equity will return before too long.

 

Nevada shows the highest percentage of mortgaged properties with negative equity at 45.4%, followed closely by Florida and Michigan.

 

Home prices in our area on the Central Coast of California are moderately rising resulting in some bidding wars on the most competitively priced properties.  

 

The cost of renting vs. buying now is about the same which is fueling an enormous increase of activity in the lower price levels.

 

Nancy Puder is a Real Estate Broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 She always enjoys hearing from you!