More Bay State Homes Achieving Positive Equity
The housing disaster, as some may very well think of it as, was a period of time interlinked with the economic recession that lasted roughly from 2007 through the end of 2011. While much of the nation is still in a state of struggle in terms of their real estate industrys performance, 2012 saw a widespread lessening of such a fight to the extent where a great deal of market improvements have now been realized. In Massachusetts in particular, incredible strides were made that were leaps and bounds over performance levels from years prior, literally mimicking the thriving pre-recession levels.
Mortgage activity is picking up, and as we recently reported in a blog, applications recently rose by 15.2%. It is here in the Bay State where come the end of 2012, far less homes were underwater with their mortgage and are now achieving positive equity. Now what exactly is negative equity, this issue of being underwater? Essentially, it is when borrowers owe more than what the actual value of their home is worth. Factors such as an increase in mortgage debt and a decline in home values attribute to this trending towards negative equity.
This uplifting news of more transitions away from such negativity come from CoreLogic, a California-based real estate data specialist. They brought forth the statistic that of the 1.4 million mortgages registered throughout Massachusetts, there were only 237,313 in negative equity at the closing of 2012s Fourth Quarter. This figure, representing just 16% of all of the mortgages, is a drop from the same corresponding time period in 2011 when 17.1% of all mortgages were underwater; or 255,154 properties.
Today, 84% of all of the homes within this State are experiencing positive equity. This plateau where over 80% of properties are in such a lofty position can be said by one of three dozen States throughout the Country. Judging by the mortgages carried into 2012 in Massachusetts, Q4 saw upwards of 200,000 residential properties that returned to positive equity in this short period of time. The United States as a whole was immensely successful as well in this transition for properties during this final Quarter as homeowners of 1.7 million places moved out of red figures. While 10.4 million properties nationwide are still in negative equity today in March of 2013, this realization is already down 22% from Q4 of 2012.
More Information: Boston Business Journal
