First American CoreLogic has estimated that even in the healthier markets that are now beginning to heal from the steep price drops of the last three years, homeowners currently with underwater mortgages will continue to have mortgages that exceed value until late 2015.
By the 4th quarter of 2009 First American CoreLogic estimated that over 11.3 million residences with mortgages had negative equity. That’s 24% of all U.S. mortgages.
By using a subset of mortgage holders, CoreLogic was able to project the length of time it will take for the average homeowner to again reach positive equity. The typical borrower will see the problem disappear toward the end of 2015 or early 2016, while those in severely depressed markets such as Detroit may not see positive equity again until 2020.
Because negative equity is highly associated with mortgage default, this is a strong indication that those of us investing in Short Sales will see a booming business for at least the next five or six years.
Lenn, I going to go raise my window now, so I can hear you more easily from Leesburg......
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
703-538-2566
davidrose@mris.com
www.HighlandAgents.com
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