RealtyTrac, a company that monitors real estate trends across the country, released a report stating that over the next 15 months, 8.3 million homeowners, making up about 18% of outstanding mortgages, will cross the equity threshold in their homes and can possibly sell their home without completing a short sale.
On average homeowners have seen a 1.33% increase in their home's value since the national average home price bottomed out in March 2012. A lot of homeowner's have been sitting on the sidelines waiting to regain enough equity in their homes to be able to sell. This has left the real estate market in a short supply situation for the past several years.
"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," said Daren Blomquist, vice president at RealtyTrac.
The elephant in the room is that a much larger swath of the homeowner populace won't see positive equity any time soon. Roughly 10.7 million homes have at least 25% negative equity in their home currently. Albeit, this number has been shrinking and was at 12.5 million last year at this time.
The report also concluded that 25% of homeowners in foreclosure have positive equity in their homes giving them a chance to sell their homes before the end of foreclosure proceedings.
If you're curious where you stand with your home's equity, visit Mike Galovic Homes today to get your free Competitive Market Analysis and see what your home is worth in today's market.
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