Let's look at some sobering statistics:
* Nearly 2 million people have a negative equity of 5% or less in their homes
* Another 1.5 million people have a negative equity of 5-10% in their homes
* Over 9 million people have a negative equity of over 20% in their homes
Right now over 14 million Americans are upside down in their mortgages, and this doesn't include the figures of those who have already defaulted on their loans. And for each 5% fall in home prices, close to another 2 million borrowers drop below zero equity in their homes. With most Americans having the majority of their wealth tied up in their home purchase, they're in danger of losing everything.
Most market analysts expect housing prices to continue to decline for the foreseeable future. In fact,we could be looking at another five to ten years of market stagnation or deflation as the current economic depression deepens. The cycle of depressed real estate is far from over. As the housing market continues
to decline, the more economic damage it causes, and economist Nouriel Roubini predicts an additional 4% drop in home values in 2011.
Source: OffTheGridNews
1 comment:
I've not a lot of sympathy for those who didn't see a housing bubble when it was clearly visible. I avoided falling in that trap (much to my wife's chagrin; she would've had us living well beyond our means and ripe for disaster if I hadn't put my foot down!).
I don't think it's bottomed out yet, either. We as a nation are in for a 'course correction'. Hang on.
Post a Comment