Skip to main content

Negative Equity Still Haunts Lower-Priced Homes! Team Thayer #realestate #housing #market #investor #news #oregon

The number of homeowners nationwide with negative equity (a condition commonly known as being “underwater”) has been on the decline for a few years. In 2015, the underwater borrower population dropped by 31 percent, or about 1.5 million borrowers.
At the end of 2015, there were 3.2 million underwater borrowers, representing about 6.5 percent of all residential mortgages nationwide—and while negative equity rates have improved overall nationally, the recovery has been imbalanced when it comes to house prices and geography, according to Black Knight Financial Services’February 2016 Mortgage Monitor released Monday.
According to Black Knight, more than half of underwater homes were in the bottom 20 percent of homes by price in their respective markets. Those 3.2 million underwater borrowers represent approximately $126 billion in first- and second-lien mortgage debt.
“Throughout 2015, the negative equity population in the U.S. decreased by over 30 percent, bringing another 1.5 million homeowners out from underwater on their mortgages,” said Ben Graboske, Black Knight SVP of Data and Analytics. “However, even after four years of improvement, the recovery has not reached all corners. When we looked at the population by home price levels, we found that over half of the nation’s underwater properties are in the lowest 20 percent of their respective markets. That’s the highest share on record. In fact, while the national negative equity rate is now 6.5 percent, for homes in the lowest price tier, it’s over 16 percent. Furthermore, this group is seeing a slower recovery than the nation as a whole. At the current rate of improvement, it would take more than five years for the negative equity rate in this lowest price tier to reach 2005 levels—roughly two-and-a-half years longer than homes in the top 20 percent.”
4-1 Neg equity graph
Black Knight found the most extreme variance from the high-end to the low-end in Detroit, where lower-priced homes were 33 percent more likely to be underwater than higher-priced homes. The bottom 20 percent of homes are still worth 35 percent less than their value at their peak in 2006, while higher-priced homes in Detroit are worth only 7 percent less than their peak values.
More than half of all properties that are currently underwater originated during the housing bubble years of 2005 to 2007, according to Black Knight. And while the government’s Home Affordable Refinance Program (HARP) was intended to allow underwater borrowers to refinance their mortgages, only borrowers with GSE-backed mortgages who are current on their loans are eligible for the program.

Team Thayer www.teamthayer.com
JUSTIN LEE THAYER
Location: Eugene, OR 97401, USA

Popular posts from this blog

Grass Seed Video

Read more

Bankruptcy Filings Dip Even Lower! Team Thayer #realestate #housing #market #investor #News #oregon

Bankruptcy Filings Dip Lower Nationwide bankruptcy filings were 5 percent lower in October 2016 compared with a year earlier, falling even lower than last month’s reported decrease, according to October 2016 AACER bankruptcy data reported by Epiq Systems. Bankruptcy filings totaled 63,042 in October, which was an increase from September’s total of 64,614, and was approximately 2.4 percent higher than October 2015’s total of 63,042 (an increase of 1,572).  Year-to-date, there have been 656,125 bankruptcy filings nationwide for the past nine months of 2016 (about 65,613 per month), down from 2015’s year-to-date total through the end of October of 700,014 (about 70,001 per month). The average number of filings per day in October 2016 was 3,152 over 20 days, which is an increase from September’s daily average of 3,077 over 21 days. The extra filing day in September compared to October accounts for the slight increase in the number of filings in September; had October feature...
Read more

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...
Read more