Positive and Negative Equity, what side are we really on?

July 1, 2013

When owning a home, you are bound to lose and gain equity depending on the state of the real estate market. With the recent up turn of the market positive equity is rising. In the first quarter of 2013 850,000 more residential properties have come back to a state of positive equity. That brings us to 39 million properties that are in positive equity.
Positive and Negative equity are something to keep aware of when purchasing or selling a home. With the current state of the real estate market, house prices are on the rise. This is due to the release of negative equity and the gain of positive equity. Positive equity is very important because when purchasing a home or selling a home, you want there to be wiggle room for when/if the market changes.
In the current turning of the real estate market, we see a lot of things changing. The gain of positive equity will bring current homeowners back on the market. This will bring an increase in inventory, which as of now, is historically low.
We are not yet where we need to be, but the market is moving in the right direction. The gain in equity is a sign of great change for people in the market to purchase a home and current homeowners who plan to sell.

Chelsea Knutson
Realtor- GRI, ABR, CDPE
the Better Living Group
Keller Williams Classic Realty NW