Last year, several of the country’s residents got help from rising housing prices, but according to CNBC real estate reporter Diana Olick, it is still not enough in many cases.
The article states, “In total, 3.2 million homeowners nationally still owe more on their mortgages than their homes are currently worth, according to a new count by Black Knight Financial Services.”
While the average negative debt is improving, it still stands at 6.5 percent, and it is concentrated in the “bottom price tier”, which greatly concerns young, first-time, homebuyers.
This news affects further buying because those that are “under water” do not have the means to buy a new home, so they are staying where they are, which further affects the economy.
The news that homebuilders are paying more attention to middle tier prices also affects the lower level housing owners because it causes delays for them.
However, The Powell Group can help. Our team members are affiliated with several people that can assist with mortgage and building information. So, give us a call and let us know how we can help you.