Over Half of Underwater Borrowers Are Nowhere Near ReSurfacing Report Says

first_img Borrowers who owe more money to banks than their home is worth is slowing decreasing, however more than half of these borrowers are stuck in an underwater free fall with little to no hope of resurfacing.According to Zillow’s first quarter Negative Equity Report released today, although the negative equity rate is falling, more than half or 4 million homeowners owed the bank at least 20 percent more than the worth of their home. In order for these underwater homeowners to even come close to breaking a sale, their homes would have to appreciate by at least 20 percent.”It’s great news that the level of negative equity is falling, but what really worries me is the depth of negative equity,” said Dr. Stan Humphries, Zillow’s chief economist. “Millions of Americans are so far underwater, it’s likely they may not re-gain equity for up to a decade or more at these rates,” “And because negative equity is concentrated so heavily at the lower end, it throws a real wrench in the traditional housing market conveyor belt.”Zillow reported that the U.S. rate of negative equity among mortgaged homeowners was 15.4 percent in first quarter of 2015, a decrease from 16.9 percent last quarter. A year ago, this rate was 18.8 percent. The rate of underwater homeowners was much higher among the homes with the least value.Negative equity improved in all of the 35 largest housing markets in the first quarter, Zillow says. This could be a sign that the country is steadily recovering from the lax lending rules and subsequent housing market bust of the last decade.More than 15 million homeowners owed more on their mortgages than their homes were worth, placing them in negative equity at the peak of the real estate crisis, the report says. Foreclosures, short sales, and rapidly rising home values saved 7.9 million of these homeowners from the pool of negative equity by the end of the first quarter. Those that remain underwater are expected to be the most severe cases to repair.Spring and summer are the busiest buying and selling seasons, Zillow says in the report. This year, there has been a high demand for homes in the bottom third of the market. However, a disproportionate number of those homeowners can not afford to sell to buyers looking for homes in their price range. Zillow found that more than 25 percent of those who own the least valuable third of homes were upside down, compared to about 8 percent of the most valuable third of homes.“Potential first-time buyers have difficulty finding affordable homes for sale because those homes are stuck in negative equity. And owners of those homes can’t move up the chain because they’re stuck underwater in the entry-level home they bought years ago. The logjam at the bottom is having ripple effects throughout the market, and as home value growth slows, it will be years before it gets cleared up. In the meantime, we’ll be left with volatile prices, limited inventory, tepid demand, elevated foreclosures, and a whole lot of frustration.”Home values are forecast to continue rising, but at a slower pace than recent years, Zillow says. Quicken Loans, reported on Tuesday that the difference between appraiser and homeowner perceptions of home values continued to increase for the fourth consecutive month in May. For the first time in 22 months, appraiser opinions of home values were 1.15 percent lower than homeowner estimates, according to Quicken Loans’ national Home Price Perception Index (HPPI).“The HPPI, more than anything, is a reminder that there is no such thing as a national housing market,” said Bob Walters, Quicken Loans chief economist. “Every city, and every neighborhood, moves in different directions based on local factors. Consumers need to remember to watch their local area closely to understand the direction their market is heading.”Click here to view Zillow’s Negative Equity Report. Home Values Negative Equity Report Underwater Mortgage Zillow 2015-06-12 Staff Writer Share June 12, 2015 521 Views center_img in Daily Dose, Data, Headlines, News, Uncategorized Over Half of Underwater Borrowers Are Nowhere Near Re-Surfacing, Report Sayslast_img read more

Go back to the enewsletter Dubaibased luxury p

first_imgGo back to the e-newsletter >Dubai-based luxury property developer and holding company Seven Tides has appointed the general manager and four senior executive committee members for its latest five-star hospitality venture, Dukes Dubai hotel and hotel apartment project.General manager, Mete Atakuman, will head up the team and brings more than 20 years’ industry experience to the role with emphasis on openings and acquisition.An Australian citizen, Atakuman, has vast experience of Dubai-based brands, having previously worked with the Jumeirah Group to oversee the takeover of the Jumeirah Bodrum Palace, Turkey as well as managing several high profile pre-opening projects in China and Azerbaijan for the international luxury hotel chain.“Mete has a proven operational and commercial track record when it comes to spearheading new hotel projects, and his experience of conveying luxury brand concepts will be instrumental to our success as we introduce this uniquely British brand to an expectant market in the region,” said Abdulla Bin Sulayem, chief executive, Seven Tides, developer of DUKES Dubai.Atakuman will lead a team which includes Laetitia Pardo who joins Dukes Dubai as director of sales and marketing.A French national with hospitality industry experience on two continents, she will play a pivotal role in positioning Dukes in the region as well as ensuring a healthy market mix for the luxury property’s leisure, business and MICE segments.Pardo has 17 years experience working for renowned hotel groups such as Atlantis the Palm, Hilton International and Sofitel, as well as iconic properties including The Savoy in London.Former French naval officer, Richard Mazeau, takes on responsibility for Dukes Dubai’s recruitment strategy as the new director of human resources.Previous experience includes Anantara Doha, where he oversaw recruitment from pre-opening, the opening of the Ritz-Carlton Abu Dhabi, as well as managing HR and training for One&Only Resorts, Dubai.The fourth new member of the executive team, director of engineering, Avnish Kumar, has been at the sharp end of the industry in the region for a decade as a pre-opening specialist, working with TIME Hotels, Mövenpick and The Address Hotels among others.Rounding out the appointments list is Navin Shah, the hotel’s director of finance, a qualified chartered accountant with over 15 years’ experience.“The success of Dukes Dubai in the UAE is contingent upon its leadership team and their ability to position the brand as a market leader and deliver its distinctly unique character in today’s extremely competitive marketplace,” added Bin Sulayem.Centrally located on the trunk of Palm Jumeirah, just 10 minutes’ drive from Dubai Marina and Sheikh Zayed Road, and only 45 minutes from Dubai International Airport, DUKES Dubai hotel and hotel apartments is set to add a distinctly British flavour to the city’s luxury hospitality offering when it opens in the first quarter of 2016.“With this launch we are bringing quintessential British charm and style to the UAE and blending it with cosmopolitan luxury to create a unique residence and hotel situated in the heart of Dubai’s most desirable island community, Palm Jumeirah,” said Abdulla bin Sulayem, chief executive, Seven Tides.The 273-room hotel and 227 hotel apartments will offer world-class leisure, conference and entertainment facilities including a private beach, indoor pool, outdoor infinity pool and state-of-the-art gym, along with five food and beverage outlets.Go back to the e-newsletter >last_img read more