17% of Homes Still Underwater, But this is not in LA and Orange County
The percentage of residential properties still labeled “seriously underwater” on their homes was 17.2 percent in the second quarter, this is down from 26 percent a year ago. However, buyers looking for Short Sales and REO’s need to look outside of California.
Orange County and LA County short sales have all but disappeared from Last year’s investors buying up and flipping those remaining properties.
Home appreciation has slowed recently and that has put recovery on a slower pace. States like
- Rhode Island
Are where buyers who want Short Sales need to look. California had home appreciation at 16% in May this year and 31% during the summer of 2013 so many of those treading water last year have had enough equity growth to either sell or refi at a more affordable rate.
LA and Orange County have had upto about a 32% equity growth for those who had previously been underwater or at least treading water.
The markets with the highest percentage of properties that were seriously underwater in the second quarter are:
Meanwhile, the markets with most resurfacing equity (in which properties are between negative 10 percent and positive 10 percent) are:
- Colorado Springs, Colo., (28%)
- Albuquerque N.M. (22%)
- Lancaster, Pa. (22%)
- El Paso, Texas (22%)
- Salt Lake City (22%)
- Worcester, Mass. (22%)
So if you are looking for Short sales and REO’s in Orange County they are few and far between. Rates at 30 year lows make this a more affordable time than when the homes were lower and the rates were in the normal 6-10% range.
For any of your Real Estate needs contact MarleneDietrich@Realtor.com 949-400-1021