Number of ‘underwater’ homes drops

Fewer borrowers nationwide owe more on their mortgages than their homes are worth, providing a boost to the housing recovery, according to a new report.

Roughly 200,000 borrowers escaped their “negative equity” positions during the final three months of last year, real estate data provider CoreLogic said Tuesday. During all of last year, 1.7 million residential properties moved from negative to positive equity.

Overall, the nation’s negative equity fell from $670 billion in the third quarter to $628 billion at the end of last year, CoreLogic said.

A shortage of houses on the market has pushed up home prices in many markets. But the supply could increase, cooling price increases, if more homeowners escape negative equity positions and regain the option of selling.

“The scourge of negative equity continues to recede across the country,” CoreLogic Chief Executive Anand Nallathambi said in a statement. “With fewer borrowers underwater, the fundamentals underpinning the housing market will continue to strengthen.”

The inability of homeowners to sell and move — say, for a better job — also places a drag on the overall economy.

Nationwide, 10.4 million homes, or 21.5 percent of all homes with a mortgage, remain in negative equity.

More in Herald Business Journal

An Alaska Airlines Embraer 175. The carrier plans to use this model on routes to and from Paine Field in Everett. (Alaska Airlines)
Alaska Airlines hopes to be a decent neighbor in Everett

Diana Birkett Rakow shared aspects of the company’s philosophy as keynote at an Economic Alliance event.

Get ready for the era of hypersonic flight — at Mach 5

The Pentagon sees hypersonic weaponry as a potential game changer.

Safe saves Everett Office Furniture’s future after fire

The business was able to reopen because vital paperwork was preserved.

Why real estate investors are watching self-driving cars closely

With decisions on real estate made years in advance, could self-driving cars change how we live?

More than 60 Boeing 737s per month: Can suppliers keep up?

There was lots of talk this week about the prudence and pressures of soaring production rates.

Developer proposes an 18-story building in Lynnwood

It would be the second-tallest in the county and include apartments with retail space.

Snohomish County business licenses

PLEASE NOTE: Business license information is obtained monthly from the Washington Secretary… Continue reading

New Everett mayor speaks out about business in city, region

Q&A: Cassie Franklin on what can be done to get Boeing to build the 797 here and attract new industries.

Aerospace analyst explains how he’ll help state’s Boeing bid

Richard Aboulafia will deliver a report on Washington’s strengths and weaknesses in landing the 797.

Most Read