Doesn’t this sentence contradict itself: “Meanwhile, millions of homes remain underwater (Black Knight’s most recent estimate says about 4 million homes are worth less than their unpaid mortgages), and home prices are racing higher...”
I noticed that contradiction too. I think in some markets, houses remain underwater. However, in other markets prices have increased to the point of being unaffordable to first time home buyers.
The fact is, it is harder to get a mortgage in the last five years than it was between 1995-2005. This is a good thing. Giving cheap money to anybody that could breath is what got us into this mess. Having to put 20% down to buy a house is what the rule was for 50 years. They changed the rules in the 90’s and it led to the crash.
Lastly, what I am seeing in the lumber business is that the areas of the country that were driven by oil have slowed up substantially. The Texas markets have slowed up with the decrease in oil. Houston was the fastest growing market in the country in 2013 and 2014. Dallas, Austin and San Antonio were next in line. These markets have slowed up. Meanwhile, other areas are getting better. Florida for one. AZ and California too. MN, WI, IA, ID , MT , CO, UT all are getting better. Most of New England is getting better.
While that is not perfect news, it mostly matters to the flippers and those trying to cash out their house to help fund their retirement.