With area home sales and prices on the rise, inventory of existing single-family homes is at its lowest in a decade. One housing economist weighs in on why more homes aren’t coming on the market.
Mark Fleming, chief economist for CoreLogic, believes inventory in North Texas has remained low because of negative equity. In fact, their data show that about 11 percent of Dallas-area homeowners owe more on their mortgage than their property is worth. An additional 5 percent of owners have less than a 5 percent stake in their home.
Nationally, 22 percent of homeowners are upside down on their mortgages, with the highest rates of negative equity found in Nevada, Arizona and Florida.
Another reason for the declining inventory, said Fleming, is that the flood of foreclosed properties is finally receding. In the Metroplex, foreclosure filings are down over 40 percent compared with first quarter 2012.
Source: Dallas Morning News