Inside the negative equity timebomb: US
homeowners lost $108.4 BILLION in equity
this year - leaving more than 200,000
at risk of going 'underwater' if property
prices fall another 5%
Daily Mail (UK),
by
Helena Kelly
Original Article
Posted By: Imright,
7/9/2023 6:05:49 PM
Homeowners are sitting on a negative equity timebomb after losing $108.4 billion on their property values this year, experts say.
The average borrower saw their home equity plummet by $5,400 in the first quarter of 2023 compared to last year - with households in Washington, California and Utah worst affected.
And if prices tumble by 5 percent more than 200,000 households could be at risk of falling into negative equity - otherwise known as 'going underwater' on their home loans.
Reply 1 - Posted by:
Mizz Fixxit 7/9/2023 6:39:02 PM (No. 1509345)
The Biden administration seeks to destroy the medium priced home market.
11 people like this.
Reply 2 - Posted by:
MissNan 7/9/2023 6:55:30 PM (No. 1509357)
The Biden administration seeks to destroy America as we know it.
16 people like this.
Reply 3 - Posted by:
BirdsNest 7/9/2023 6:57:42 PM (No. 1509361)
Here in ESVA, property prices are crazy high. Locals can't afford to buy anything.
8 people like this.
Reply 4 - Posted by:
formerNYer 7/9/2023 6:59:26 PM (No. 1509363)
My nephew was in from the west, he said that commercial real estate is dead and the crash already hit. Downtown Portland looks like a zombie movie.
Two things the LSM is not reporting.
The worst is yet to come.
16 people like this.
Reply 5 - Posted by:
halfnorsk 7/9/2023 7:38:55 PM (No. 1509396)
Not the case in bastions of freedom such as Sioux Falls, SD.
9 people like this.
Reply 6 - Posted by:
Mcscow sailor 7/9/2023 8:49:09 PM (No. 1509417)
After several years of high valuation growth, a little bit of loss here should matter little. 140 million housing units, 200,000 ar risk is a trifle. Downtown commercial real estate is another matter, a result of both decaying social conditions and the cost savings from at home workers.
6 people like this.
Reply 7 - Posted by:
paral04 7/9/2023 8:56:43 PM (No. 1509422)
That was to be expected when the Biden Administration raised interest rates three fold.
6 people like this.
This happens every now and then. Personally experienced it in a big way, post-2008. But hey, if rags like the Mail want to sensationalize it as we roll into 2024 - fine by me.
5 people like this.
Reply 9 - Posted by:
zephyrgirl 7/9/2023 9:45:59 PM (No. 1509449)
We bought our house during the last downturn. Downturns represent opportunities for the prepared. Never buy at the top of the market.
3 people like this.
Reply 10 - Posted by:
Birddog 7/9/2023 10:03:41 PM (No. 1509453)
Mines 100% equity, worth nearly three times what I paid for it...cash at a tax sale from someone who got upside down and walked away from it the LAST time this happened. My sole regret at this point is that I didn't take some of that equity out when interest rates were 3% or less, and buy gold with it. 30% growth on 2016 money borrowed at 3%, with an inflation rate twice that, reducing what it costs to pay it back?
Still...the neighborhood I bought it in is still on an upswing, another 3% since jan. Houses are only on the market a day or 3, and often selling for more than the ask.
Starting over the winter/spring I'll be finalizing plans building a spec house on the extra lot out back...aimed at the sweetspot of the local market $300-400k. I built homes for a living before '08, have plenty of plans in hand, make some minor changes, be the primary contractor, hire subs between their regular jobs, do the energy/insulation/solar stuff that garners the greatest grant matching money or rebates, harvest every dime.
4 people like this.
Reply 11 - Posted by:
smokincol 7/10/2023 2:16:18 AM (No. 1509505)
expect more of this if in the 2024 election the repubs don't get the majority in the House and a non-RINO Senate (minus Hong Kong Mitch)
the demcommies will drive this country right into the sewer, even if our President is re-re-elected to office
3 people like this.
Reply 12 - Posted by:
ussjimmycarter 7/10/2023 3:25:38 AM (No. 1509507)
This will never make it into one US publication of the left!
2 people like this.
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