US Housing Outlook Improves: 1.3 Million Households Gain Positive Equity

US Housing Outlook Improves: 1.3 Million Households Gain Positive Equity

Minneapolis : MN : USA | Sep 14, 2012 at 11:02 PM PDT
Source: PRWeb
Views: Pending

CoreLogic released a report announcing that the number of residential properties in negative equity continued to decrease in the second quarter of 2012, amounting to over 1.3 million households freed by tipping the value of their home's equity status from "underwater" to "overwater". September 14, 2012

CoreLogic®, a leading provider of real estate data, released a new residential properties report on September 12th, showing that 10.8 million, or 22.3 percent, of all mortgages were in negative equity at the end of the second quarter of 2012. That represents a total of 1.3 million US households that have risen from negative home equity to positive home equity so far this year.

Destiny Homes sees positive expectation that home values will continue to rise even further with the good news that an additional 1.8 million homeowners are only underwater by 5% or less. "I am encouraged by Anand Nallathambi's, president and CEO of CoreLogic outlook that these properties could move into positive equity territory if home prices continue to improve as anticipated," says Butch Sprenger, owner of Destiny Homes.

The breakdown of information, and good news for homeowners, in CoreLogic's report is:

  • This is down from 11.4 million properties, or 23.7 percent, at the end of the first quarter of 2012.
  • An additional 2.3 million borrowers possessed less than 5 percent equity in their home, referred to as near-negative equity, at the end of the second quarter.
  • Approximately 600,000 borrowers reached a state of positive equity at the end of the second quarter of 2012.
  • More than 700,000 home borrowers moved into positive equity in Q1 of 2012.
  • Over 1.3 million households regaining a positive equity position since the beginning of the year.
  • The share of borrowers still underwater but current on their payments was 84.9 percent at the end of the Q2 in 2012, up from 84.8 percent at the end of Q1 in 2012.

“The level of negative equity continues to improve with more than 1.3 million households
regaining a positive equity position since the beginning of the year,” said Mark Fleming, chief
economist for CoreLogic. “Surging home prices this spring and summer, lower levels of
inventory, and declining REO sale shares are all contributing to the nascent housing recovery
and declining negative equity.”

Coupling this CoreLogic's report with the National Association of Home Builders/First American Improving Markets Index(IMI) August report on improving housing markets, US homeowners are welcoming the good news and gaining a favorable outlook.

Some homeowners have sat on the fence, wanting to remodel their homes, while waiting to see home values on the increase to see if it makes sense in terms of investment dollars. With news . "Two of the best investment home renovation projects homeowners can make are kitchen and bath upgrades. If you think about it, that makes sense because these rooms with the highest levels of daily activity. Top quality appliances, spacious bathrooms, and quality construction will go a long way in helping attract buyers. In many cases you can expect to receive about 75-90% of the cost of remodeling one of these rooms", says Sprenger.

Additionally, after a press conference yesterday, Federal Reserve Chairman Ben Bernanke said, "While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote". If Bernanke is right, "not only is now a fiscally responsible time for homeowners to build, it is also good timing for home renovations and the construction industry", said Butch Sprenger.

CoreLogic's data shows a wide variance by state in home equity rates. It listed Nevada with the highest percentage of mortgaged properties in negative equity at 59 percent, followed by Florida (43 percent), Arizona (40 percent), Georgia (36 percent) and Michigan (33 percent). These top five states combined account for 34.1 percent of the total amount of negative equity in the U.S. Minnesota is above average with a 17.1% negative equity share. As more homeowners actually find that their home's equity has increased, it adds favorable opinion that the U.S. housing outlook is indeed improving and stable.

Minneapolis and St Paul area homeowners encouraged by increasing home values are moving forward with their home remodeling and renovation projects. Contact Destiny Homes at 952-934-6706to engage a highly awarded home remodeler with over 35 years of distinctive builds in the Twin Cities area.

For the original version on PRWeb visit:

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