Wondering if your home is still “under water” or “upside down” (ie do you still owe more on your mortgage than your home is worth)? If you live here in Phoenix, you may know that at the bottom of the market (Fall 2011), Phoenix was in the top 5 cities in the nation for the most under water home owners with more than 30% of home owners still owing more than their homes are worth. The good news is that inventory is still low and because of that combined with record low interest rates, home prices are rising. Today, the USA Today reported that Phoenix has dropped out of the top 5 cities, mainly due to price increases of over 19%.
Many homeowners are hearing that prices are increasing, but I don’t think they all realize the extent to which they are rising. I think most homeowners would be surprised to find out the value of their home today. Some more good news is that prices will likely continue to rise until either inventory levels increase or interest rates increase enough, or some combination of the two. So, even if your home is still under water, it may soon surface and start building some positive equity.
As always, if you have any questions about the value of your home in the Phoenix area, please contact me.
To read the USA today article, click here.