Rising Home Prices Are Tempting More Home Owners

By
Real Estate Broker/Owner with Realty Empire Incorporated

With rising home prices, more home owners are finding they can sell without fear that their mortgage is worth more than their house. The number of sellers coming onto the market is serving as a relief to home buyers who were becoming increasingly frustrated at the lack of inventory and increased bidding wars, the Associated Press reports. 

It’s a “virtuous circle,” says Mark Fleming, chief economist of CoreLogic, a real estate data provider. “The fact that house prices have increased so dramatically ... has unlocked a lot of that pent-up supply.”

From January to March, about 19.8 percent of homes nationwide with a mortgage are considered “underwater” -- that’s a drop from 23.7 percent a year earlier. 

The largest percentage of underwater homes in the nation are often found in the markets with the lowest supply of homes for sale, according to CoreLogic. Tampa Bay, Fla., and Miami have the highest number of underwater mortgages of metro areas at 41.1 percent and 40.7 percent, respectively. 

Housing inventories remain constrained in many markets. As of May, there’s a 5.2-month supply of existing homes for sale nationwide, according to the National Association of REALTORS®. One year earlier, the supply of homes stood at 6.4 months.

Some home owners may continue to resist selling despite regaining equity, believing that home prices may rise even more if they wait, economists say. However, economists predict that as inventories increase, home price increases will moderate. 

Source: “Home price gains bring ‘underwater’ sellers off sidelines, relieving frustrated buyers,” The Associated Press (June 30, 2013)

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Posted by

 

Stephanie Leon

Real Estate Broker
Realty Empire

6625 Miami Lakes Dr.
Miami Lakes, FL 33014

Contact me at:
786-664-7710
SLeon@RealtyEmpire.net

 

 

                        

  

 

All Rights Reserved. Copyright 2010-2018 Stephanie Leon Realty Empire 

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Rainer
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Mike Warren
Real Estate - Colorado Springs, CO

Good post, Stephanie. Thank you for sharing this information. Good luck and more success!

Jul 02, 2013 06:52 PM #1
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Stephanie Leon | Miami Lakes Realtor®

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