Underwater Homes Not Decreasing as Fast as They Could Be
According to data released by RealtyTrac 9.1 million US homes (or “17 percent of all properties with a mortgage in the first quarter”) were “seriously underwater” in Q1 of 2014. The figures were published in a report called “Home Equity & Underwater Report”.
A property is considered seriously underwater when the “combined loan amount secured by the property is at least 25% higher than the property’s market value”. The number shows signs of recovery, as Q4 of 2013 ended with 9.3 million residential properties being underwater (or “19 percent of all properties with a mortgage”), but experts think the pace of recovery is not as strong as it could be, mainly due to the slowed appreciation of home prices.
The period with the least positive equities was Q2 of 2012, “when 12.8 million U.S. residential properties representing 29% of all properties with a mortgage were seriously underwater.”
Read the full article in the Housing Wire.