2013 has been an exceptional year for residential Real Estate. For most of this year we have seen double digit year-over-year increases in the median property value. For many homeowners these increases have brought them out of the negative equity position that many homeowners experienced after the collapse of the financial markets.
According to Zillow, the national negative equity rate fell at the fastest pace ever in the third quarter as rising home prices helped homeowner’s regain equity. Only 21% of homeowners are currently underwater nationwide.
Foreclosure inventory has fallen for the last 18 consecutive months and is down roughly 30% from a year ago. According the Seattle firm, Lender Processing Services, US foreclosure inventory is at the lowest point since 2008. At the end of October, just over 1.2 million loans, or 2.5% of currently active mortgages are in foreclosure.
This trend should continue. With price appreciation expected to continue through 2014 (albeit at a slower pace than 2013) the future of home ownership looks bright for people looking to purchase a new home and for current homeowners thinking about moving to new surroundings.