Home prices are on the rise with fewer foreclosures. Ilyce Glink talks about the fall of underwater homes on today’s Real Estate Minute.
Over the past five years, your home probably lost at least a third of its value. The good news is that the bleeding has stopped and home prices are starting to turn around.
U.S. residential real estate lost about a third of its value after home prices peaked in 2006. The collapse of the mortgage market in 2008 sparked a global financial meltdown and created the worst foreclosure crisis since the Great Depression.
But last year, home prices started to revive. The median price of an existing home rose about 7 percent from 2010 to 2012. That’s the good news.
Here’s some more good news: While there are still about 7 million underwater properties, which are worth less than the mortgages on them, that’s down from 11 million in 2011, according to JPMorgan Chase. By 2015, the number of upside-down home loans could drop to 4 million.
As home values rise, there will be fewer foreclosures and short sales, which is good for you and your neighborhood.
Let’s rebuild America, one house at a time.
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