Jan 11

Feds say housing market continues to recover from Great Recession

mergerWASHINGTON, D.C. – As 2015 came to a close, the U.S. government’s Department of Housing and Urban Development (HUD) reports that the housing market reached key milestones on the path to recovery – homeowners’ equity rose again, the number of homeowners in negative equity continues to decline, and purchases of new homes increased in the wake of the Great Recession.

Here’s a closer look back at some of the progress HUD reported on January 11:

  • Homeowners’ Equity rose again in the third quarter of 2015. Homeowners’ equity (total property value less mortgage debt outstanding) was up $361 billion (3.0%) from the second quarter of 2015, for a total of nearly $12.4 trillion–the highest level since the fourth quarter of 2006. Homeowners’ equity peaked in the first quarter of 2006 at nearly $13.3 trillion.  The increase in owners’ equity was $260 billion in the second quarter. The change in equity since April 1, 2009, when the Administration initiated its broad set of actions to stabilize the housing market, now stands at more than $6.1 trillion (+98.6%). (Source: Federal Reserve).
  • The number of homeowners in negative equity continued to decline in the third quarter. As of the third quarter of 2015, CoreLogic estimated that 4.1 million homes, or 8.1 percent of residential properties with a mortgage, were in negative equity. This compares to 4.3 million, or 8.7 percent, that were reported in negative equity in the second quarter and 5.2 million, or 10.4 percent one year ago. From the beginning of 2012 through the third quarter of 2015, the number of underwater borrowers (those who owe more on their mortgage than the value of their home) has declined by 66 percent–from 12.1 million to 4.1 million—or by 8.0 million homeowners. (Source: CoreLogic).
  • Purchases of new homes rose 4.3 percent in November but remained below the 500,000 mark. New home sales increased to 490,000 (SAAR) in November from a downwardly revised October pace of 470,000 and were 9.1 percent higher than a year earlier. New home sales have been at or above the 500,000 mark for 6 of 11 months this year. Data on new home sales can be volatile and are often revised. (Source:  HUD and Census Bureau).

– See more at: http://blog.hud.gov/index.php/2016/01/11/measuring-progress-housing-market-16/?hootPostID=bbf4aa62e95708be97a0588a3ea195fe#sthash.zVcV9HMq.dpuf

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