Real Estate Market Analysis: Negative Equity - Insights into the Future

There are many opinions on where the market is going in real estate. With so many moving parts, there is no opinion that is so solid that you’d bet your business. However, there are facts, and CoreLogic recently published some data points that are important.

CoreLogic announced that 23.1% of mortgages are in negative equity. That means that according to our data, 23.1% of mortgage loan balances are greater than the associated property values. According to the release, 23.1% of mortgages equates to 11.1 million residential properties. This data moves every month, and does not include commercial properties. An additional 2.4 million homes are within 5% of the equity balance.

Clearly, this is bad news for many homeowners and the economy in general, but if you have developed a strong REO and short-sale business within your brokerage, you are positioned to prosper because that channel of business for residential real estate brokers is rich with inventory.

Again, there are many moving parts that can change the landscape dramatically – economists often point to Federal Government fiscal policy, interest rates, bank lending policies, price of oil, and the list goes on. Most of this is outside our control, but you don’t need to stand still while you wait to see what happens next. There are ways to keep your finger on the pulse of what’s happening, and we can help.

Real estate intelligence and information can help you manage your business in these tough times. If you would like to download the negative equity report, please follow this link.

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