As home prices and housing demands continue to rise, negative equity is preventing many homeowners from putting their homes on the market.
According to CNBC, about 5.4 percent of all mortgage properties are in a negative equity position, meaning owners owe more on the mortgage than their home is currently worth. The national aggregate of homeowners still needs to make up $284 billion to break even. This makes homeowners unable to sell their homes, contributing the the lack of housing stock.
"Given the strength of the job market, favorable demographics and rock-bottom mortgage interest rates that make buying a home very affordable, the existing home sales market should be roaring instead of whimpering," Svenja Gudell, Zillow's chief economist, wrote in reaction to the weak August home sales report from the [National Association of] Realtors. "All those factors that should be acting as tailwinds may all be present, but they're being overwhelmed by the simple fact that there are just very few homes actually available to buy."
Advertisement
Related Stories
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
Sustainability
Which Green Building Practices Are Home Builders Using Most?
A recent report reveals which green-building practices are most popular among single-family home builders and remodelers