Home owners who owe more on their mortgage than their home is currently worth actually may be helping to drive up home prices in certain markets, suggests CoreLogic in its July MarketPulse report.
These underwater home owners, who can’t afford to take a loss on the sales price of their home, are refusing to sell. As such, inventories are shrinking, giving buyers fewer options to choose from and lifting prices, according to the report.
Housing markets that are seeing some of the highest appreciation are also in states that have some of the highest number of underwater homes, according to CoreLogic.
"Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and combined with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets," according to CoreLogic in its report.
Source: “CoreLogic: Negative Equity Pushes Prices up in Certain Markets,” HousingWire (July 16, 2012)
We are finding in Atlanta, well priced homes in excellent condition are pending sales in just a few days. We are also seeing many multiple offer situations. The market is starting to turn to a Sellers market.
If you are considering buying a home, take advantage of the LOW interest rates and the current prices to get in now. Inventory is shrinking!
These underwater home owners, who can’t afford to take a loss on the sales price of their home, are refusing to sell. As such, inventories are shrinking, giving buyers fewer options to choose from and lifting prices, according to the report.
Housing markets that are seeing some of the highest appreciation are also in states that have some of the highest number of underwater homes, according to CoreLogic.
"Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and combined with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets," according to CoreLogic in its report.
Source: “CoreLogic: Negative Equity Pushes Prices up in Certain Markets,” HousingWire (July 16, 2012)
We are finding in Atlanta, well priced homes in excellent condition are pending sales in just a few days. We are also seeing many multiple offer situations. The market is starting to turn to a Sellers market.
If you are considering buying a home, take advantage of the LOW interest rates and the current prices to get in now. Inventory is shrinking!
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