Real estate professionals are eager to find more homes to list. Some home owners say they’d sell as long as they could, however their mortgage is still too much. Nearly 3 million home owners still are in a negative-equity position with their home.
Quite a few owners are really stuck with their homes
That equates to about 5.4% of all of the properties having a mortgage that remain in a negative-equity position, where the owners owe more on the mortgage than their home is actually worth, as outlined by real estate data firm CoreLogic. While fewer homes happen to be in negative equity when compared to a last year (when the percentage was 7.1%), the percentages still remain elevated.
Home prices have been steadily rising since 2013. Homeowner equity reached $8 trillion in the second quarter of 2017, which happens to be more than twice the level five years ago.
The increase in equity is assisting homeowners in a “near-negative equity” position get closer to obtaining some equity in their homes. However some homeowners who’ve eked out some equity still lack enough to move. Approximately 710,000 properties have less than 5% equity with their homes, CoreLogic reports.
Economists are blaming the still-high negative equity as one main culprit behind why there are actually very few homes for sale. In August, housing inventory was down well over 6% in comparison to a year ago, as reported by the National Association of Realtors®.
The markets having the highest percentage of negative equity on mortgage properties are: Miami (14.7%), Las Vegas (12.2%), Chicago (10.8%), and the Washington, D.C., metro area (7.2%).
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