Home Equity
In the April issue of The Real Deal there was a particular article that we thought would be of some interest to you readers. "Big Rebound in Home Equity" by Kenneth R Harney discusses the recent slow rise of home owner's equity over the past two years. This slow but steady rise is great news for those looking to sell their home or refinance. According to Harney, "Thanks to rising prices and equity levels, about four million owners nationally last year climbed out of the financial tar pit of the housing bust-negative equity."
So what does this mean for us realtors and mortgage loan officers?
This means that more homeowners can now begin to refinance their homes and those looking to sell can now afford to move out without the need to bring money to the table to pay off what they still owe the bank. For real estate agents, this signals an increase in the amount of inventory and the new potential business. For mortgage professionals, it indicates that their client database could begin to increase.
A study completed by CoreLogic researchers found "nearly 43 million owners with mortgage debt have positive equity. Roughly 6.5 million are still in negative equity positions down from more than 12 million in 2009."Hopefully that number continues to decrease within the following years.
http://therealdeal.com/
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