It feels terrible when the property that you are paying a mortgage on depreciates, falling into a position of negative equity. But this is what happened in 2011 to 12.1 million properties, as borrowers found themselves in a position often referred to in the real estate market as "having an underwater mortgage." Yet Fannie Mae economists are predicting positive equity lies in store for many of these underwater borrowers.
Current Real Estate Market Trends Will Positively Influence Home Equity
By the beginning of 2013, the real estate market started to see a slow recovery as interest rates reached all time lows, the labor market showed signs of improvement and people started to have the extra income to purchase a home. Buyers began scrambling to find available properties at a time where there was low inventory, spurring a rise in home prices as homeowners became motivated to put their houses on the market.
These circumstances positively influenced underwater borrowers, as they saw their homes appreciate in value. According to Fannie Mae economists, a total of 1.7 million homes were removed from their underwater mortgage status as they reached positive equity last year. Economists are now predicting that 1.8 million more homes will do the same through 2013.
Such great news has all real estate professionals hopeful that the market is finally stabilizing. Yet the true numbers won’t be known until the end of the year.
Brighton Escrow Helps People Own Their Homes
Buyers and sellers are eager to close the deal in the home-buying process. When you are looking for a reliable escrow company to help complete the final transactions, Brighton Escrow provides the exceptional service you would expect during this important time of closing the deal. For more information about escrows, please contact Brighton Escrow at 310-545-8484 as they provide services to the Hermosa Beach, South Bay and Orange County areas.