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

Snohomish inventor makes changing beds magical

He hopes to make his big push in the hotel industry, where injuries to housekeepers are increasing.

Boeing planes designed for Alaska to make final flights

The special Boeing 737-400s carry cargo in the middle of the plane and 72 passengers in the rear.

Job fair planned for Tulalip community members

Tulalip Tribes Employment is holding an employment clinic from 9 to 11:30… Continue reading

New memory care community opens in Mukilteo

Health care insurance is the next topic on KSER’s monthly personal finance… Continue reading

Marysville Tulalip chamber plans to host candidates forum

The next Greater Marysville Tulalip Chamber of Commerce Business Before Hours event… Continue reading

New memory care community opens in Mukilteo

Mukilteo Memory Care celebrated its grand opening earlier this month. The state-of-the-art… Continue reading

Monroe’s Canyon Creek Cabinet names new exec VP

Mark Kovich has joined Monroe-headquartered Canyon Creek Cabinet Company as the executive… Continue reading

Century 21 North Homes Realty adds new agent in Lynnwood

Century 21 North Homes Realty has welcomed Adriene Crum to its Lynnwood… Continue reading

Longtime Comcast Everett employee travels to aid Houston

Lake Stevens resident and longtime Comcast Everett employee Brandon Johnson traveled to… Continue reading

Most Read