Negative Equity Drags Home Sales - New York Times

housing-upsidedownFirst American Chief Economist Mark Fleming discussed how rising prices may impact first-time-buyers, but reducing negative equity will help existing owners return to the market. 

“Rising prices only crimp affordability for the first-time buyer who doesn’t yet own the asset,” Mark Fleming said. 


Mark also noted that the vast majority of home sales are to existing homeowner, and what changes existing homeowners' affordability is their own income and the price of money.

 

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