Home prices across the nation grew an average 13.7% year-over-year in November, according to the S&P Case-Shiller Home Price Indices released Tuesday. On a city-by-city basis, Dallas outperformed with an annual return of 9.9%, the highest gain since it was added to the index in 2000. Also standing out was Chicago its highest increase since 1988.
That might be good news for the housing market, but Fitch Ratings says it won't be much help for borrowers struggling to pay their loans. While rising home equity has had a positive influence on borrowers' payment behavior, Fitch estimates the percentage of borrowers entering foreclosure with positive equity has doubled in the past two years amid modest economic improvement.
However, with foreclosure starts dropping 26% last year to a six-year low according to RealtyTrac, there might still be reason enough to celebrate.