Underwater borrowers, distressed sales still linger in regions
The housing market shifted to recovery mode this past year, with home prices on the rise and foreclosures falling closer to pre-crisis levels, RealtyTrac claims in a new report.
More than 75 of the largest metropolitan areas across the nation posted a housing recovery index of more than 100. A score above 100 suggests the the surveyed market is recovering at a faster pace than the national average, RealtyTrac pointed out.
While the index revealed that the 100 largest metro areas sampled are past the bottom in home prices, 63 markets still have at least 20% of homes underwater.
Meaning, the estimated value of the home, and loans originated during the housing bubble years still represent at least 20% of outstanding mortgages in 94 out of the 100 largest metros, the real estate information company explained.
New foreclosure activity is past its peak in all 100 largest metros, but distressed sales still account for at least one in every five sales in nearly 75% of the metros.
Market experts agreed that the housing recovery is hyper-local as a result of simple supply and demand, and going forward, they are not worried about any serious bumps in the housing recovery.
Read the full report here.