The negative equity situation in the U.S. is one of improvement, reported real estate website Zillow, though there is still progress to be made.
As Stan Humphries, Zillow’s chief economist, put it, the benefits of an improving equity situation are numerous.
“As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous. Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets,” Humphries. “But negative equity is still very high, and millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas. As a result, negative equity will remain a major factor in the market for the foreseeable future.”
But what numbers did Zillow uncover for the negative equity situation? See our infographic below for some perspective: