More Homes Are Back In The Black

2015 has brought a number of important indicators signaling returning health in the real estate market. As the market heals, the number of new homebuyers is on the rise. What about, however, those who had already purchased their homes? For many, the Great Recession signaled a move into negative equity, meaning that they owed more on their home than it was worth. Dipping housing prices was a major cause for concern, but fortunately it seems it no longer will be.

CoreLogic released reports showing that 273,000 homes saw the return to positive equity in Q3 of 2014. That means that 44.6 million homes—or 90 percent of mortgaged properties—are now back in the black. Experts predict that home prices will increase by another five percent this year, which will bring around one million more homes into positive equity.

Nevada and Florida are the top two states in the country with negative equity, with 25.4 percent of Nevada homes and 23.8 of Florida homes having negative equity. Fortunately, these states also saw the biggest drop in that kind of equity in Q3.

These reports show that 5.1 million homes still show negative equity, but that number has decreased from 6.5 million in the third quarter of 2013. Ultimately, this report signals the return to a more normalized real estate market and brings good news for homeowners still facing negative equity. The trend shows a return to positive equity across the board.

You deserve to secure the right home loan to ensure you never have to worry about your home losing equity. The Ranch & Coast Mortgage Group Inc. in Solana Beach is here for all of your California mortgage needs. Contact us today and get the loan you need with our Quick Application.