Across the nation home prices are continuing their steady increase. As a result of home prices surging over the last year it has left nearly two million homeowners back above water on their home mortgage. In the first quarter of the year 17%, or 9.1 million, of homeowners across the country were considered seriously underwater on their home. According to RealtyTrac, to qualify to be considered seriously underwater the property owners debt exceeded their home’s value by 25% or more. The good news is these numbers are down from 10.9 million, or 26% of all owners only a year ago. RealtyTrac data also shows that there are fewer properties in foreclosure that are underwater.
“Because of rising home prices, many of the homeowners in the foreclosure process — more than a third — actually have positive equity. That will enable some of them to avoid foreclosure,” said Daren Blomquist, a vice president for RealtyTrac.
Nevada, Florida, and Illinois continue to remain the states with the highest percentage of seriously underwater property owners. Those metro areas in the country where more than half of foreclosures now have positive equity include, Minneapolis, Houston, Denver, Boston, and Washington, D.C.
The RealtyTrac report noted that the amount of homeowners with 50% or more equity in their home known as “equity-rich” increased to 9.9 million in the first quarter of 2014. This number is equivalent to 19% of all mortgaged homes. With the number of property owners increasing that are equity-rich it could continue to help the rebounding housing market. These homeowners are more likely to put their home on their market and trade up for bigger more expensive homes.
If you are looking to buy or sell a home in Crow Wing County this fall, contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.