There’s more good news for the housing market after last week brought with it a drop in America’s negative equity rate. The country’s negative equity rate fell below 15%, showing the housing market’s progress since the post housing bubble crash. The drop in negative equity was driven mainly by the steady rise of home values throughout the county.
"If the overall negative equity rate is going to continue to fall, it will need to keep being driven down by improving health at the bottom end of the market," Zillow’s Chief Economist Dr. Svenja Gudell, said. "The least valuable homes really bore the brunt of negative equity during the recession, and that's where most negative equity remains concentrated today. As more first-time buyers enter the market seeking these less expensive homes, home value growth at the bottom end could continue to outpace growth overall, which will be good news for millions of underwater homeowners in these homes."
Source: PR Newswire, Zillow