Posted by Jaymie Tarshis on 8:49 AM with No comments
According to CoreLogic, a sudden increase in home prices last quarter has caused more than 2.5 million borrowers to regain home value and no longer owe more on their mortgage than their home is worth.
Originally in late 2009 during the worst of the housing market's meltdown, 36% of all homeowners were underwater. As of the end of June 2013, only 14.5% of homeowners remained underwater on their homes.
The shift in the market is largely due to low inventory of homes, causing home prices to soar almost 7% during this last quarter, according to the S&P/Case-Shiller national home price index.
Through the rest of the year and into early 2014 we will likely see more homeowners put their homes up for sale. With fewer borrowers underwater, homeowners know they will be able to sell their home and still get cash out of the deal. Subsequently, many sellers will no longer have to suffer through a short sale and take a hit on their credit, a deal in which their home would be sold for less than what they owe the bank.
The top fives states where mortgaged residential properties reported with negative equity were Nevada at 36.4%, Florida, Arizona, Michigan, and Georgia at 20.7%, reported by CoreLogic in their 2nd quarter Negative Equity Report.
Utah has seen a drastic improvement between first and second quarter shifting from 13.9% in negative equity to 8.1%.
For questions about selling your home or to see what your home is worth, please call us at 800.461.4152 or you can contact us by filling out a form here.