Spring Run Market Reports

Michael Burke

Why?  If you review our market trends and inventory levels (click here); you will notice inventory levels are down considerably in most communities.    We have even noticed prices in some communities starting an upward trend. 

According to CoreLogic’s latest report, negative equity data showed a second consecutive quarterly decline in national negative equity rates.

CoreLogic reports that 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010.

Foreclosures, rather than meaningful price appreciation, were the primary driver in the change in negative equity. An additional 2.4 million borrowers had less than five percent equity. Together, negative equity and near-negative equity mortgages accounted for nearly 28 percent of all residential properties with a mortgage nationwide.

Negative equity, often referred to as "underwater" or "upside down," means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.