February 21st, 2013
The news on home ownership is getting better every day. Today we have two good stories to share with you.
Zillow is reporting that 2 million homeowners are no longer underwater on their mortgage. The cities that saw the most improvement included Phoenix, Los Angeles and Miami.
“2012 was a pretty big year for working down negative equity,” says Zillow chief economist Stan Humphries in the accompanying video, adding that strong home value appreciation was a big contributor to that trend.
Home values rose roughly 6% in 2012 to a median value of $157,400, according to the Zillow Home Value Index. That price appreciation, along with the elevated level of home foreclosures, led to the drop in negative equity in 2012.
As we mentioned in a prior post, if you think you’re underwater, you may not be anymore, and now could be a good time to refinance. Talk to a professional mortgage loan officer to find out what your specific situation calls for.
Per MSN, the housing market is improving in all 50 states.
Another piece of evidence that the housing-market recovery is spreading: All 50 states now have cities on the National Association of Home Builders/First American Improving Markets Index.
“The fact that all 50 states now have at least one metro on the improving list shows that the housing recovery has substantial momentum and continues to expand from one market to the next,” NAHB Chairman Rick Judson, a homebuilder from Charlotte, N.C., said in a news release. “Of course, there is still much room for improvement in metros that have not yet been listed, as well as those that have.”
One major city that finally joined the list was New York City. The last two states that joined were Kansas and New Mexico.
To be classified as improving, a city has to have shown improvement in building permits, employment and home prices for at least six months.
With increasing buying activity now is a great time for both first-time homebuyers and homeowners to take advantage of the current low interest rates. Talk to a reputable mortgage loan officer. A good loan officer will diligently monitor interest rates for their clients, and industry trends that may impact which loans are best for you.