Home Equity … From Negative to Positive
home equity
According to a forecast by First American CoreLogic, the typical U.S. homeowner in a negative equity position will begin to build positive home equity by late 2015 or early 2016. In some depressed markets, typical borrowers with negative equity may not experience positive equity until 2020 or later, according to the report. Research conducted by First American CoreLogic indicates more than 11.3 million, or 24 percent, of all residential properties with mortgages, had negative equity at the end of the fourth quarter of 2009. Read more
San Diego Negative Home Equity
San Diego negative home equity
Last week, online real estate valuation researcher Zillow.com released its latest quarterly number on negative equity in major markets. The percentage of homeowners with negative equity appears to be on the decline.
For San Diego County, Zillow found the fourth quarter negative equity rate was 24.7 percent, which was down from the second quarter, when it was 31.6 percent, but higher than the third quarter, when it was 21.6 percent. In metropolitan Las Vegas, for example, 81.3 percent of all homeowners – 256,000 households – were underwater on their mortgages in the fourth quarter. In Phoenix, 61.5 percent of borrowers were in negative territory.
San Francisco real estate lawyers
San Diego Homeowners – 12 Years To Recapture Lost Equity?
home equity recovery
No doubt, San Diego is seeing a few green shoots in the housing market. This is especially evident in the low end of the San Diego real estate market. However, I don”t advise joining the overly optimistic crowd who are expecting four years of home value erosion to be quickly recaptured.
In a report from HSH associates, a Pompton Plains, N.J., financial publishing house, they stated:
“According to the Standard & Poor’s Case-Schiller Home Price Index, the popular measurement that tracks changes in the value of residential real estate in 20 metropolitan regions, prices have fallen 32.6 percent, peak to trough, between 2006 and the third quarter of 2009.
“Then from July 2010 through August 2011, a period of 14 months, prices are projected to increase at a rate of about 2.5 percent a year. And from then on out, the company is figuring on a yearly gain of 3 percent.” Read more
Homeowners – 1 in 5 Owe More on Mortgage Than Home’s Value
As the housing market has collapsed, roughly one in five homeowners now owe more on their mortgage than their house is worth. That’s created one of the thorniest problems in the debate over foreclosure relief: Who should bear the loss when a mortgage is bigger than a home’s value? Various proposals have been floated, including having the government share some of the loss in return for a stake in the possible appreciation of the home after it’s refinanced. downtown San Diego real estate
One in Five Homeowners has Negative Equity
Nearly one in five U.S. mortgage borrowers owe more to lenders than their homes are worth, and the rate may soon approach one in four as housing prices fall and the economy weakens.
About 7.63 million properties, or 18 percent, had negative equity in September, and another 2.1 million will follow if home prices fall another 5 percent, according to a report by First American CoreLogic. The data, covering 43 states and Washington, D.C., includes borrowers nationwide, even those who took out mortgages before housing prices began to soar early this decade.
Seven hard-hit states — Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio — had 64 percent of all "underwater" borrowers, but just 41 percent of U.S. mortgages.
Related prior posts:
More homeowners than ever are selling at a loss!
San Diego Real Estate … The Coming Next Wave of Foreclosures
Home Sales Fall In March… Seventh Month In A Row
Home Values Fall in England and Wales
Home Equity vs. Second Mortgage
Citigroup spent $1 billion advertising it's Live Richly campaign from 2001 to 2006 encouraging Americans to take out home equity loans. Marketing executives knew that "second mortgage" had an unappealing ring. So they seized the idea of "home equity," with its connotations of ownership and fairness. Advertising historians look back at the '80s as the time when bank marketing came into its own. Citigroup led the way by hiring away advertising staff from packaged goods companies like General Mills and General Foods, where catchy ads were more common. "Banking started using consumer advertising techniques more like a department store than like a bank," said Barbara Lippert, an advertising critic for the magazine Adweek. San Diego California income property listings