Posted on 11/22/2013 4:30:40 AM PST by whitedog57
According to Zillow, the U.S. negative equity rate fell at the fastest pace ever in Q3 2013. That is good news … if you own a mortgage or a home. But not great news if you are one of America’s growing renters.
Leading the recovery, due to house price recovery, is California. And second is Nebraska? In general, the West which was so hammered by the housing bubble burst is recovering nicely.
zillownegeqmap11222013
Here is a map of counties regarding negative equity. Red is “bad”, blue is “good”. You can see that the West and select counties around the nation are still in negative territory. But it is definitely improving.
negeqmp112213
So, the government’s HARP program to assist negative or zero equity homeowners has definitely run out of gas. Rising house prices have lessened the pain of negative equity and rising mortgage rates since May 1st have reduced the benefits of a HARP refinancing. Loan-to-value ratios for borrowers over 100% LTV have declined noticeably over the past year. But notice that LTVs under 100% have increased.
ZillowFigure7
So, house prices are rising rapidly and mortgage rates are generally higher since May 1st.
The incentive for borrowers and mortgage lenders to “play the HARP” is dying.
gerrit-van-honthorst-king-david-playing-the-harp-1611-1156x1407x3001
Where?
Interesting. With the boom in North Dakota (oil related, but keeping statewide unemployment around 3% or less), there are few homes which are “underwater”. The tax assessors have doubled the value of mine in two years. Now, that shows up as bad on the map...but shows how the numbers get screwy.
Well, the prices at the 2009-2010 bottom when everybody was way underwater were much closer to fair market value. They’ve blown up the bubble again, at least part of the way, and no good will come of it.
Yes, they are pouring out money which actually is nothing more than ones and zeroes in a computer but when the price of housing returns to the old high and then slightly higher the media will trumpet that there has been a great recovery and housing is back in “positive territory”, completely ignoring that a fast food hamburger without fries will cost double the current hourly minimum wage. Inflation truly clouds the minds of men.
Note that South Dakota is, once again, totally neutral.
Well, the prices at the 2009-2010 bottom when everybody was way underwater were much closer to fair market value. They’ve blown up the bubble again, at least part of the way, and no good will come of it.
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Agreed completely !
2009 numbers were correct based on historic norms ... this is another bubble , pouring $85Billion a month into the market will do that.
HEY PEOPLE!!! Where are the fundamentals in job growth , family income and savings to support any price increase?
Central KY has stayed relatively stable all along. Fairly small drops. Average selling time longer. Priced right, they are moving pretty well right now. A little high? They sit
In Central Florida where my BIL lives, 70% of the sales are FHA 3% down. Not good.
Taxing authorities are frustrated by no bubble. They love all the easy money that comes from inflated property values.
you’re absolutely correct.
It’s never made sense to me that policymakers view expensive housing prices as a desirable outcome for the economy.
you’re absolutely correct.
It’s never made sense to me that policymakers view expensive housing prices as a desirable outcome for the economy.
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