The US housing market is showing further signs of recovering

US housing market

RealtyTrac’s Q3 2015 US Home Equity & Underwater Report found the number of seriously underwater homes —homes with a loan amount of at least 25% higher than the property’s market value — fell to 6.9 million from last quarter’s reading of 7.4 million. According to RealtyTrac, just 12.7% of US properties with a mortgage remain seriously underwater after hitting a peak of 28.6% (12.8 million) in the second quarter of 2012. RealtyTrac vice president Daren Blomquist attributed the drop in seriously underwater homes to home sales and volume “picking up dramatically” following a lull earlier in the year. On the flip side, equity rich homes — homes with at least 50% equity — represent 19.2% of all properties with a mortgage. This was actually down from 19.6% in the previous quarter, an indication “more homeowners in this category are leveraging their equity through a refinance, move-up sale or by completely cashing out of the housing market,” says Blomquist.

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