Number of homeowners in positive equity increased over Q2
Posted on Tuesday, September 10, 2013 at 12:57:35 PM
Residential financing has always been a good method for buyers to afford new properties, and a recent report showed that more people are leaving negative equity behind, finally owing less on their mortgages than the home's worth.
Roughly 2.5 million people were back in positive equity for the second quarter of 2013, according to data from CoreLogic. Those people comprised more than 41 million properties over that time span, although at least 10 million borrowers had less than 20 percent equity.
However, there are still more people with negative equity. More than 14 percent of all homes were in this state - high, but down from the 19.7 percent reported in the first quarter of 2013.
"Price appreciation obviously had a positive impact on home equity over the first half of 2013, especially the second quarter," said Anand Nallathambi, president and CEO of CoreLogic. "Despite the substantial decrease in negative equity, there's more ground left to gain with the 7.1 million U.S. residences that remain underwater."
In addition to buyers with residential financing, home builders are also showing improvement, a good sign for the housing market. Stock investors have increased activity for the sector, according to HousingWire. Overall, demand is still great for new homes, and on a large scale affordability is a positive.