According to First American CoreLogic data release, 20% of mortgaged properties in the U.S. were in a negative equity position at year-end 2008. Negative equity and near negative equity mortgages combined (within 5% of being in negative equity territory), now account for 25% of all residential properties with a mortgage nationwide. That means 1 out of 4 mortgaged homes are currently underwater!
The falling prices and improving home affordability (see chart below) combined with mortgage rates lingering at historic lows drove December’s sales increase. According to Radar Logic, motivated sales rose 177% year-over-year from December 2007 while the sum of all other sales in the 25 metropolitan statistical areas fell by 17%.
To top it all off, the government has rolled out a $8,000 first time home buyer tax credit program for 2009. At a glance:
For more details, click here.
To summarize: housing affordability is high, mortgage rates is low, short sale offers added discounts, and you get a $8,000 tax credit for 2009 purchases…need I say more?!
