Equity Situation Improving Nationwide
Last week, CoreLogic released their 2013 4Q Home Equity Report. The report revealed the following:
4 million residential properties regained equity in 2013
An additional 1.2 million properties would regain equity if home prices rose another 5%
There are still 6.5 million properties in negative equity
The percentage of homes with a mortgage in negative equity is 13.3%
Another 10.4 million properties have minimal equity (less than 20% home equity)
The average loan-to-value ratio is 62%
Remember, there is a pent-up selling demand created by homeowners being unable to sell their home over the last several years because the value of the home was less than the mortgage amount.
As more and more homeowners reach positive equity, the number that will decide to list their house for sale will increase. There is an opportunity for the true real estate professional to help families that are considering a move.