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44% owners stuck @ home.


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2013 May 24, 2:02am   2,661 views  4 comments

by LarryPatrickMaloney   ➕follow (0)   💰tip   ignore  

http://www.thestreet.mobi/story/11933280/1/44-of-homeowners-with-a-mortgage-cant-sell-zillow.html?puc=yahoo&cm_ven=YAHOO

Despite a recovery in prices, over a quarter of homeowners with mortgage loans still owe more than their homes are worth. "But another 18.2 percent of homeowners with mortgages, while not technically underwater, likely do not have enough equity to afford to move," according to the blog post. 43.6% of homeowners have less than 20% equity in their homes. That makes it hard for them to move or trade-up, given the considerable costs involved in buying and selling a home, including the cost of a down payment for the next mortgage. This inability to sell is one of the big...

#housing

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1   Oil Can   2013 May 28, 1:41am  

robertoaribas says

I expect sales to slow down, but prices to still keep increasing slowly over the next few years.

The prices always increase when the cost of borrowing goes up. Oh, wait....

2   david1   2013 May 28, 1:47am  

Oil Can says

robertoaribas says

I expect sales to slow down, but prices to still keep increasing slowly over the next few years.

The prices always increase when the cost of borrowing goes up. Oh, wait....

That is the trend actually. Interest rates don't increase in a vacuum.

3   Oxygen   2013 May 28, 3:51am  

"In regions particularly hard hit by the housing bust, including California, Florida, Arizona and Nevada, "there has been a negative equity feedback loop, as regions with high negative equity have experienced acute inventory shortages brought on in part by locked-in underwater homeowners, and these shortages in turn have produced home value appreciation spikes, which have been reducing negative equity at a fast pace," according to Zillow."

It's pretty comedic to see these things happen with a detached interest.

4   everything   2013 May 28, 6:35am  

I think this is probably pretty common in the ranges of 250-400k prices. Shortages are in the lower price ranges (100-200k), because anyone with a pulse can get a loan again, or rates are so low, people can even afford to fix up the place. Anything less than 100k just keeps getting flipped until the price is over 100k and someone finally gets stuck with it. I know prices can be different in other areas, that's just what it's like where I live.

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