As a state, North Carolina is fairing pretty well in the real estate recovery.
Only about 11 percent of the homes in the state with mortgages were seriously underwater in December, and 16 percent of the state’s mortgages were equity-rich, according to a report released Thursday from RealtyTrac, the housing data research firm.
“The percentage of equity-rich homeowners is nearing a tipping point that should result in a larger inventory of homes listed for sale and give the overall economy a nice shot in the arm in 2014,” stated Daren Blomquist, vice president at RealtyTrac.
Nearly half of all the homes in foreclosure in North Carolina’s most populous counties right now have some level of equity in them, and, contrary to popular belief, don’t have underwater mortgages.
North Carolina ranks fifth in the country with 45 percent of its foreclosure properties having some equity left in them, or a loan-to-value ratio of 100 percent or less, ranking behind Oklahoma, Colorado, New York and Texas.
About 22 percent, or 734 properties, in North Carolina were “seriously underwater” in December, where a homeowner owed at least 25 percent more than the estimated market value of the property.
Nationally, about 31 percent of homes in foreclosure have some equity, and 48 percent of foreclosed properties are seriously underwater. The remainder are less than 25 percent underwater or equity-rich.
Of the 38 counties in North Carolina tracked by RealtyTrac, Wake County and Mecklenburg County made up nearly 72 percent of all the foreclosure properties with equity, with 401 properties and 685 properties respectively.
Mecklenburg County had the most foreclosure properties that were seriously underwater with 446 home sites. Wake County had only 65 foreclosures seriously underwater.
SOURCE: Triangle Business Journal