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 ServicesFebruary 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

Popular posts from this blog

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread...

First-Time Home Buyer Mortgage Risk Edge Up Team Thayer Real Estate news.

The first-time buyer share in April, May, and June was launched to new highs, supported by improvements in the labor market, riskier mortgage lending, and continuing low mortgage rates. The  American Enterprise Institute (AEI)  International Center on Housing Risk  recently released a  report , finding that first-time buyers account for 58.8 percent of primary owner-occupied home purchase mortgages with a government guarantee, up from 57.2 percent the prior June, according to the Agency First-Time Buyer Mortgage Share Index (FBMSI). The Combined FBMSI, which measures the share of first-time buyers for both government-guaranteed and private-sector mortgages reached an estimated 52.9 percent, up from 51.6 percent the prior June, according to the report. In addition, AEI determined that the Agency First-Time Buyer Mortgage Risk Index (FBMRI) stood at a series record of 15.83 percent, and increase of half of a percentage point from the average over the prio...

Understanding the tax advantages and disadvantages of homeownership #realestate #taxadvantage #taxes #housing #market

It’s no secret that some of the major perks of homeownership are the tax write-offs and advantages that follow the purchase. In fact, according to a 2015 survey by the National Association of Realtors, 80% of homebuyers see homeownership as a good investment, and 43% think it’s better than investing in the stock market. Reaping the rewards of mortgage interest and property tax deductions is just one way to think of your home as an investment. But there are even more real estate–related tax advantages and disadvantages that can slip under a new homeowner’s radar. It can be relatively easy to trigger tax liabilities or perks (and then fail to claim them) on that new piece of  Eugene, Or, real estate . This is why it’s essential to touch base with your tax pro before every real estate transaction, no matter how minor a question you may have. Sometimes planning and timing make a major difference in the financial impact of a real estate–related tax; other times, ...