Rise of Home Values Wards Off More Foreclosures

Equity rising is pushing away some foreclosuresThe heavy burden of negative equity, owing more to the bank than your home is worth, is easing off of many homeowners and helping to end the
foreclosure
crisis. This will give homeowners the freedom to sell their property in search of better jobs and areas, and have a little more protection against hard times. The Equifax Finance Blog shares more about what changes in the market mean for homeowners in the new article, “
One Million Homeowners Are Back in the Black
.”
The reduced inventory, as low as 20 percent less in many areas, far outpaces government or bank programs to reduce costs as the biggest way homeowners are being helped. This reduction in inventory is because so many owners can’t afford to sell in their current position, so homes on market experience bidding wars and multiple offers, which leads to higher prices. These higher prices in turn raise the value of areas and the other homes within them. As it stands, at the end of the first quarter of 2012, 1.9 million homeowners were within five percent of reaching positive equity, or a value greater than their loan. As those 1.9 million and more reach positive equity and have the freedom to sell their home without owing more to the bank, there will be more choices for buyers.
This spells a slide toward healthy markets once more, which will also boost the overall recovery. There is still a long way to go, so keep up with the Equifax Finance Blog to learn more about how to make your money go further, from real estate to
retirement
and more.