“Paradoxically, as the flow of REOs has slowed over the last 18 months, negative equity has become a positive force in real estate markets by restricting supply in the face of increasing demand”

~

CoreLogic: Negative equity props up home prices in toughest markets

The negative equity problem may actually be pushing up home prices at the bottom of some of the hardest-hit housing markets, according to a report from CoreLogic ($17.39 0.06%).

The national supply of unsold homes dropped to 6.5 months in April from nine months last June. But the decline occurred less because of an increase in sales. In fact, pending home sales dropped 5.5% in April, according to the National Association of Realtors.

Instead, fewer homes reached the market because the owners owe more on their mortgage than the home is worth and are trapped in negative equity, said CoreLogic Senior Economist Sam Khater in the report.

Rest of the story here…

Copy of the report here…

~

4closureFraud.org