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California Leads The Way In Number Of Increased Equity Homeowners

With housing prices on the rise, many formerly upside down homeowners are Drop in negative equity sees rise in real estate valuesonce again seeing equity in their properties.

A recent study conducted by Zillow.com showed that the nation as a whole has seen sharp drops in “Negative Equity” housing; meaning that the the number of homes worth less than their loan amount, has dropped dramatically.

Overall, Negative Equity homes have dropped 21 percent in the third quarter of 2013, with California leading the way at 44.4 percent. Followed by:

Nebraska (38.9 percent)
Minnesota (38.2 percent)
Arizona (38.1 percent)
Utah (37.5 percent)
Texas (35.7 percent)
Nevada (35.6 percent)
Oregon (32.5 percent)
Washington (30.2 percent)

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What this means for home sellers.

Many homeowners who may have previously owed more on their mortgage than their home is worth may now enjoy the opportunities that come with renewed equity in their property. Whether this means they are now able to refinance, or sell at a profit, it has an impact that reaches far and wide. A drop in Negative Equity homes means that other properties may have a better chance at being sold at a higher rate without negative equity properties dragging down values. This also means that homeowners facing the threat of foreclosure may be able to sell at a profit without having to go through the challenges and credit recourse that result from a short sale.

Good news for the 2014 real estate market.

While we usually see a bit of a slowdown in sales during the last quarter of the year, especially around the holidays, overall sales are still way up over last year, especially in the Santa Clarita Valley. Inventory is rising, but still way below the average (Approximately 500 residential homes currently for sale in Santa Clarita vs. an average inventory of around 1200). Even still, this is a great opportunity for both buyers and sellers to plan on making their 2014 real estate goals a reality.

Indicators are showing that, while the economy continues to improve at a slower pace than many would like, the real estate market will continue to see steady gains in both equity and sales volume; once again proving that purchasing real estate is one of the best investments you’ll ever make.

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