Wednesday, March 20, 2013

Home Equity Sees Recovery in Millburn-Short Hills Area

Fewer homes are underwater in value, according to the latest report from CoreLogic. Improvements in home values are being seen nationwide as well as in Millburn-Short Hills!

I won't keep you in suspense! CoreLogic says that 88.1 percent of homes in the New York-White Plains-Wayne N.Y-N.J. statistical area have positive equity!

While we are a few miles away from the core metropolitan area, our home values have seen a similar, progressive rise in recent months. Please keep in mind that this is a broad statistic and home values will vary by neighborhood.

CoreLogic's report also shows that homes at the higher price ranges are gaining equity at a quicker pace. Here are some more findings:

86 percent of homes valued at $200,000 or more have equity, compared with 72 percent of homes valued at less than $200,000.
Homes with a combination of outstanding primary mortgages and home equity loans accounted for $315 billion of negative equity nationwide. 
6.5 million negative equity borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $213,000. The average underwater amount is $45,000. 

3.9 million negative equity borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $296,000.The average underwater amount is $80,000! 

In other words, the total amount of mortgage debt outstanding plays a role in how quickly homes recover equity. And because second mortgages were used as a down payment method during the boom, some homeowners were heavily leveraged from the beginning. These homeowners have deeper hole to escape, but fortunately the market trends are cooperating. 

If you are preparing to sell your Millburn-Short Hills home, let's start with a comparative market analysis to find out your home value in today's market! I will also provide a net sheet to show your estimated sale proceeds. 
As your Millburn-Short Hills real estate professional, I will provide the expert guidance you need for a successful home sale! Contact me today, and let my 18 years of experience be your market advantage!  
Elaine Pruzon
Coldwell Banker Residential Brokerage
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