The increase in the prices of the homes last year had enabled the homeowners and property dealers to bag more profits from their sales. This is indeed a fresh sign of improvement for the housing markets business in the United States. The data which has been mentioned comes directly from the reports released by CoreLogic. Last year around 10.4 million home owners owed money in terms of their mortgage. It is also important to note here that the amounts they owed on their mortgages are much more than their homes. In the year 2011, the housing market had been on a constant decline, but since last year all of this seems to be changing now. It all happened in lines to the ease in the foreclosures and policies.
Most of the economists are of the view here that this growth would continue to move onwards till the year 2013. Now here no one knows that how long it would talk for the housing market to reach at the point where it used to be many years back, but still the signs of growth are quite positive. Nearly 1.7 million of the properties have reached to the state of positive equity. Anand Nallathambi, one of the chief executives of CoreLogic said in this regard that the housing market has a lot of potential in it which can be seen in the growth last year. He also added that the fundamentals that are now underpinning the housing market would be strengthened. Among the 38.1 million homes that are believed to be above water, nearly 11.3 million of them used to have less than 20 % equity. In the present circumstances, these homeowners might not be able to get some new financing options.
Moreover, 2.3 million homeowners were also really close to the negative equity which indeed makes them vulnerable to the downturns that might occur. The average levels of equity for all the properties used to be about 31 %. In terms of the underwater rates, Nevada used to be in the lead with nearly 52.4 % homes. The second spot had been occupied by Florida with nearly 40.2 % homes. Next in line were Arizona, Georgia and lastly, Michigan. In total, these 5 states now account for nearly 32.7 % of the negative equity levels in the whole country. But the positive indications about the growth of the housing businesses will surely change the negative equity paradigms.
