Welcome to the Blog

2013-02-22 08:03:16
Homeowners Released from Negative Equity in 2012

 Zillow: 1.9M Homeowners Released from Negative Equity in 2012, Over the course of last year, nearly 2 million homeowners were released from negative equity, Zillow reported Thursday.

Data from Zillow revealed 1.9 million homeowners came out of negative equity due to two main reasons: sustained high foreclosure rates and rising home values, which increased by 5.9 percent year-over-year, according to the Zillow Home Value Index.

Zillow further projects at least 999,601 homeowners will be released from negative equity in 2013.

“As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous,” said Dr. Stan Humphries, Zillow’s chief economist.

Humphries explained, “homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets.”

Zillow also estimated 13.8 million mortgages were still underwater at the end of the Q4, down from 15.7 million in the same quarter in 2011. The most recent figure represents 27.5 percent of homeowners with a mortgage, down from 31.1 percent a year ago. Zillow’s report uses data from TransUnion and looks at current outstanding loan amounts for owner-occupied homes and compares them to the current value of the homes.

In dollar terms, homeowners were collectively underwater by more than $1 trillion at the end of 2012.

Out of the 30 largest metros, the areas with the highest number of homeowners freed from negative equity in 2012 were Phoenix, where 135,099 homeowners were released, followed by Los Angeles (72,936); Miami-Fort Lauderdale (70,484); Dallas-Fort Worth (59,461); and Riverside, California (58,417).

This year, Zillow expects the most freed homeowners to come out of Los Angeles, Riverside, Phoenix, Sacramento, and Dallas-Fort Worth.

While progress is being made on a national and local level, Humphries noted “negative equity is still very high,” and pointed out “millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas.”







Blog Archive
2014-04-24 07:19:57
Homeowners Have an Edge on Renters

2014-04-23 07:24:00
Putting the Home in Home Delivery

2014-04-22 08:02:37
Healthier Market in Spring

2014-04-21 08:15:19
Young Residents Flock to City: Suburbia at Risk?

2014-04-19 08:07:29
Mortgage Rates Continue to Drop

2014-04-18 08:05:59
Welcome signs” for Spring Buyers

2014-04-17 07:35:02
Lot Shortages Make Building Costs Higher

2014-04-16 07:28:25
Home Prices Press Down Affordability

2014-04-15 08:09:01
Sell When You Need to, Don’t Chase the Market

2014-04-14 08:01:52
Fannie Mae Selling to Investors

2014-04-12 07:52:39
FHA Program Gives Distressed Homeowners 2nd Chance

2014-04-11 08:52:17
Foreclosure Up In March

2014-04-10 08:59:06
So should you buy now? Or wait?

2014-04-09 08:01:16
FHA may bring back 'spot' condo loans

2014-04-08 07:39:56
Landlords are Projected to Increase Rents!

2014-04-07 08:08:01
Freddie: No More Record-Low Mortgage Rates

2014-04-05 07:31:52
Shrinking Investment Buyers

2014-04-04 08:18:32
Foreclosure and Shadow Inventory Decline

2014-04-03 07:46:07
Provo-Orem, Utah One of the Happiest Communities

2014-04-02 08:11:09
Financial Benefits of Home Ownership

2014-04-01 08:33:40
96% of Markets Better Off Than in 2010

2014-03-31 07:35:11
Fannie Extends Closing Cost Incentive to Buyers

2014-03-29 08:55:38
Discovery Gateway Children's Museum

2014-03-28 08:31:19
High Expectations for Retirement Homes

2014-03-27 07:51:25
New Report Faults Fannie, Freddie

Click here to see ALL articles.

Comment on this Article

Your Name:
Your Email:
Verify:  Please enter the numbers shown to help eliminate spam.