This is news, but not really. I am actually surprised it is not higher. With the values dropping as far as they have, it is surprising to me that more people don’t owe more than their home is worth right now.
I do believe that with inflation, improved employment that this will self correct over time. The big question is how long will it take to correct? I have heard guess-ta-mates anywhere from 3 to 12 years out. My guess-ta-mate, well that is one of the purposes of my blog… it depends on the job situation – if our economy turns around and people get good paying jobs again, we will recover quickly. If this economy lingers, it will take much longer. How’s that for stating the obvious? I am trying track the factors that influence our housing market on this blog, so far I have not discovered a crystal ball that gives an exact date. If you can predict the jobs recovery, you can predict the housing market recovery…
Nearly 11 million properties, roughly 22.5% of all U.S. homes, were worth less than the underlying mortgage in the second quarter, according to CoreLogic.
- Has the Housing Market Finally Found Its Footing? (money.usnews.com)
- Is negative equity trapping you in your home? (moneyexpert.com)
- Underwater? Yes, you can refinance (sfgate.com)