Posted on: 11th Sep, 2013 03:52 am
According to a new report released by CoreLogic, the number of homes which are underwater has declined steeply in the second quarter, courtesy rising home values. The number of homes underwater in the first quarter was 9.6 million and it declined to 7.1 million in the second quarter. It is however expected that this improvement will slow down in the second half of the year as the home price gains are likely to cool off.
Price appreciation definitely has a positive impact on home equity. Once the home equity rises due to increase in price, there will be a decrease in number of underwater properties. However, there are still around 7.1 million US homes which are underwater.