Today's NAR Magazine reports that with rising prices, more underwater home owners are regaining equity, and home sales are on the rise, according to the Obama Housing Scorecard, released each month by the U.S. Department of Housing and Urban Development.
What's important, however, is to remember that even if the home value is equal to the mortgage amount (or more) for a homeowner to sell, another 8-10% of the purchase price is needed to pay closing costs and brokerage commissions as applicable. Thus, in order for the market top truly reflect a forward trend, we need price to increase substantially.
So, in our view, aside from the fact that many homeowners are sleeping more easily, there's more to the story in order to effect a deeper and broader market recovery.
Get the full story HERE.
