Underwater Homeowners Gaining Traction, Report Shows
(NEW YORK) — While the housing recovery is real, there is still plenty of pain for homeowners who have been underwater with their mortgages since the collapse of the market six years ago.
A new report out Thursday from RealtyTrac says 10.7 million U.S. households owe at least 25 percent more on their mortgages than their properties are worth.
But Daren Blomquist, the vice president at the listings firm, says the findings also show that the recent rise in home prices in most markets is helping many homeowners improve their equity stake.
“Steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of homes for sale in the coming months,” he says.
Blomquist says the sharp price rise this year, especially in the West, may not last. “We’re digging our way out of a hole and I think once we get out you’ll see things kind of level off,” he says.
Unlike the last time home prices surged in the 2000s, analysts say there are few signs of an emerging bubble.
“What’s different here is that financing is very tight and we’re not seeing homeowners get into loans I believe that they can’t afford,” says Blomquist.
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