With fourth quarter reports rolling in from testing and analytic groups like CoreLogic and Realtytrac it seems that, although the housing market as a whole is creeping upwards in some areas, homeowners aren’t out of deep water yet… literally.
The number of homes with negative equity, also known as underwater homes, went up from 22.1% in the third quarter to 22.8% in the fourth.
The average loan to value ratio on these homes was 130%.
Distressed properties made up 24% of all home sales in the past year. Distressed properties refer to both Short Sales and REO’s (or foreclosures).
SHORT SALES UP, REO’s DOWN
Even though homes are still underwater, the nature of the market is changing. Short Sales were up 15% while REO’s were down 12%. That means that more people are able to sell their home before it’s foreclosed on.
And although people are still upside down in their mortgages, the total number of distressed sales in 2011 was down 5% from the prior year.
Not to mix metaphors here, but there is some light at the end of the tunnel.
