Negative Equity: A New Way of Life in the Recovery

Negative Equity

While 4.9 million homeowners have risen from underwater since the negative equity peak in 2011, one in five homeowners with a mortgage remains underwater today, according to Zillow’s data.

That’s about 10.8 million homeowners currently in a negative equity position.

The “effective” negative equity rate is even higher at 39.2 percent in the third quarter, according to Zillow.

The “effective” rate includes all homeowners who have less than 20 percent equity in their homes. This rate is significant because selling a home and purchasing a new one “requires equity of 20 percent or more to comfortably meet related expenses,” according to Zillow.

More than half of underwater homeowners are underwater by at least 20 percent, Zillow stated. Assuming Zillow’s estimate for home price growth at 3.8 percent over the next year, it will take a homeowner with 20 percent negative equity five years to rise to the surface.

Phillip Dean Allen, New Artist Member Of The San Diego Museum Of Art Artist Guild

 New Press Release

Aftermath of Government Shutdown...!!!

Activity from Homebuyers Picks Up...!!!

Homebuyers shook off their fears and returned to the market in force following the re-opening of the government in October, according to data presented by Redfin’s Research Center.

he Seattle-based online brokerage reported a 58 percent annual increase in the number of interested buyers reaching out to its agents in the week immediately following the resolution of the partial federal government shutdown, up from a 41 percent year-over-year increase recorded the prior week.

Verona Cityscapes

Heritage Harley Davidson

Need For FHA Reform... That's An Understatement...!!!

Need for FHA Reform

The agency grew from a portfolio of about $400 billion before the housing crisis to about $1.1 trillion since, all while its capital reserves fell to -1.44 percent in 2012 despite a mandated minimum of 2 percent.

 FHA reported a projected capital reserve of -0.4 percent for this year before a rise to 0.2 percent in 2014.

Meanwhile, the agency has upped its premiums and received $1.7 billion from the Treasury to bolster its financial status and keep the agency viable.

Venice, Italy - a City of Bridges

City of Bridges