Here's great news for home buyers: The number of Twin Cities homeowners who have a mortgage that exceeds the value of their house continues to dwindle. During the first quarter just 8.0 percent of all homeowners with a mortgage in the metro were underwater, according to the latest report from CoreLogic.That's a slight decline from last year at this time when the negative equity rate stood at 10.7 percent and 10.2 percent nationwide.
Why should home buyers care? Negative equity has been a drag on house listings. When someone is underwater on their mortgage, they've very unlikely to put their house on the market. So with every dip in the negative-equity rate, the potential pool of house listings increases. Right now, for example, nearly 50,000 Twin Cities homeowners are underwater.