Share of homes with negative equity drops below 30%


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One of the biggest drags on the housing market in addition to the obvious foreclosure issues that are well documented, are the number of homes that are in a negative equity position.

There are currently 14M homeowners who are underwater on their mortgages but they have work, and are paying their mortgage down, and remain steadfast home owners. With the current rise in home prices, a lot of people have now emerged from a negative equity position and are back in a positive equity position. That means those homeowners can now sell their homes and pay off their mortgage to the bank and look to buy a new home.

`[A] substantial number of homes are still locked up in negative equity, unable to enter the existing re-sale market despite the desires of their owner,` Zillow chief economist Dr. Stan Humphries said in a release.

On top of that, we see that the largest markets measured by Zillow are all experiencing more people moving from negative into positive equity,

The real estate data provider[Zillow] also found the 30 largest U.S. metros saw quarterly declines in negative equity.

This will lead to a much more healthy housing market.

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