Home values in the Twin Cities are rallying further which frees a higher number of sellers to list their homes, should they wish to, according to new CoreLogic data. Home Destination, a Twin Cities residential real estate with RE/MAX Results, comments on how the improvements in home equity bolster the housing market.
January 12, 2015 (Newswire.com) - Showing significant gains, only 7.3 percent of home owners in the Twin Cities with a mortgage owed more than their home was worth during the third quarter of 2014, according to the released January 8th by CoreLogic. That represents an improvement of approximately 10 percent over levels one year ago, slicing the percentage of underwater metro homeowners found two years ago. As home values in the Twin Cities rally, it frees a higher number of sellers to list their homes.
"Negative equity declines in the Twin Cities regional housing market are putting a high number of homeowners in the position where they can list their home for sale should they wish to," says Jenna Thuening, owner of Home Destination. "A number of recent and positive trends, including home price appreciation and the return of traditional home sales, show that more homeowners are position \ favorable to invest their current home's equity in another home."
"Although the number of homeowners who are under water has decreased significantly, there still are a considerable number who are near negative equity, says Herb Tousley, University of St. Thomas Director of Real Estate Programs. "Even if they are not under water, they have very little equity and when they sell their home they do not have enough money to buy a new one."
Across all Minneapolis 13-county metropolitan communities, the encompassing sum of 42,477 residential homes was underwater when matched with figures of 47,691 properties during the previous quarter. An improvement of 2.6 percent or 15,245 properties are now in near negative equity status versus the 2.9 percent, or 16,658 homes recorded in the Q2 of 2014.
Highlights of CoreLogic's Third Quarter 2014 Report on the Return to Positive Equity
Details of positive home equity on a national level:
- More homeowners moved from negative home equity to positive equity in the third quarter
Details of positive home equity in the state of Minnesota:
- 72.3% of home owners have less than 80% LTV
While levels of single-family home sales in the Twin Cities tottered last year in the Minneapolis - St Paul housing market, home prices improved for 33 consecutive months, according to the Minneapolis Area Association of Realtors (MAAR). Prices are still stretching to reach pre-crash levels; the waning is providing new prospects for previous homeowners who are involuntarily had to sell their homes due to financial hardships. One positive outcome is that fewer homeowners are caught in the struggling within confines of the Minnesota foreclosure timeline. The return of stronger home equity norms is a significant leap in efforts for a full real estate housing recovery.
"Forecasted house price appreciation of about 5 percent over the next year suggests that negative equity should be at about 8 percent a year from now, still above average, but approaching the pre-crisis level," Sam Khater, deputy chief economist for CoreLogic said. Improvement in home values at such levels should prove to give more prospective sellers the confidence to list their homes for sale in 2015.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis residential real estate expert for over 15 years, home buyer types gain her guidance in housing decisions. Whether seeking to homestead a property or to purchase investment homes, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from. Read the report on how more Twin Cities homeowners are returning to positive equity.