Dr. Housing Bubble — Reemerging from negative equity – Over 1.4 million American borrowers pull out of negative equity in 2012

The big story of 2012 was the incredible decline in available housing inventory for sale. This trend appears to be continuing and is adding a tremendous amount of pressure on the current market especially for those looking to buy. Ironically, the increase of real estate values will also revive many home owners from their zombie slumber in negative equity. Over 1.4 million borrowers came out of a negative equity position in 2012. This is a large number given the limited amount of inventory on the market. How many of these people will be looking to sell as their homes turn into positive territory? The quest for inventory might come from a very familiar place with regular people selling their homes for a variety of reasons including moving to another place, cashing in, marriage, divorce, new job, or any other factors that cause people to sell. In other words, a more normal housing market. Will these former negative equity borrowers push inventory levels up?

Dr. Housing Bubble
Reemerging from negative equity – Over 1.4 million American borrowers pull out of negative equity in 2012. Will this have an impact on nationwide inventory?