Hub homeowners doing okay during real estate slowdown
Dec 2010 14

According to newly released data, most Massachusetts’ homeowners continue to hold equity in their homes, meaning they are in good position should they need to sell or even take out new loans or refinance.

CoreLogic, a leading provider of information, analytics and business services, today released negative equity data indicating that fewer than 15 percent of Massachusetts’ homeowners are “underwater” on their mortgages. Even better, as many as 50 percent of Massachusetts’ homeowners have “positive equity” in excess of 40 percent.

Nationwide, it was the third consecutive quarterly decline in negative equity for residential properties. (Decline in negative equity being a good thing.) CoreLogic reports that 10.8 million, or 22.5 percent, of all residential properties with mortgages were in negative equity at the end of the third quarter of 2010.

Over million homeowners have gone from negative to positive equity positions, according to CoreLogic, meaning their homes are worth more than they owe on their mortgage loans.

The company also estimates that the national homeownership rate is under 57%, about ten percent less than the rate quoted by the government. The difference is because CoreLogic removes the homes owned by people who are unlikely to ever see prices return to levels that would allow them to break even on home sales. In effect, their home investment is worthless.

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