Here’s what Home Price Growth and Declining Negative Equity Mean for the Housing Market in 2016

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This seems like good news for the housing industry. The only drawback is that it can also indicate that another unsupportable “Housing Bubble” is forming but most indicators point towards to a good 2016.

For a more detailed look at this subject – please read the article below.

The FHA Condos Approval Company, Inc.

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The number of residential homes with negative equity, also referred to as being “underwater” or “upside down,” has been steadily declining in the last few years while the number of homes with equity has been on the rise.

That is a combination that bodes well not just for housing, but for the overall economy, according to CoreLogic’s Q3 2015 Negative Equity Report released on Tuesday. The report found that 256,000 residential properties regained equity in the third quarter, bringing the nationwide total to about 46.3 million, which calculates to approximately 92 percent of all homes with an outstanding mortgage.

“Homeowner equity is the largest source of wealth for many Americans,” said Anand Nallathambi, president and CEO of CoreLogic. “The rise in home prices, expected to be at least 5 percent in 2016, will continue to build wealth and confidence across America. As this process continues, it will provide support for the housing market and the broader economy throughout next year.”

The number of residential properties with a mortgage that had negative equity as of the end of Q3 was at 4.1 million, or about 8 percent of all homes nationwide. This represented a decline of nearly 5 percent from Q2 2015 and nearly 21 percent from Q3 of 2014, when 5.2 million homes (10.4 percent) had negative equity, according to CoreLogic. The aggregate value of the negative equity in those 4.1 million homes in Q3 was $301 billion, nearly a 12 percent decline from Q3 2014 when it was reported to be $341 billion.

To read the complete article – please use the link below.

Negative Equity Rate Decline

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