With some amazing appreciation in the last year and hopes pretty high for the summer to come, many Bay Area home owners that have been “underwater” on their loan for years are beginning to see equity.
This is giving many the opportunity to sell or refinance into loans with better terms finally.
The fact is many Bay Area homeowners have had a rough time the last 7 years since the housing bust started…
However a very low supply of homes on the market are making it more and more difficult for buyers with many competing and driving prices further upward.
Negative equity — a key factor slowing the return of a healthy supply of homes for sale — is continuing to drop across the Bay Area, according to a report Thursday from online real estate service Zillow.
But it’s still high in the areas hardest hit by the housing crash, such as parts of Contra Costa County, Zillow said in a quarterly report on homes that are underwater — worth less than their mortgage.
That could slow sales this year, since homeowners are reluctant to sell at a loss.
The good news is that the percentage of all houses, townhomes and condos with a mortgage that’s underwater has been dropping in all four counties of the East Bay, Peninsula and South Bay for more than a year, Zillow said.