A chart by Alex Tabarrok who also says:
Calculated Risk gathers the data on underwater homes:
- There are 14.75 million underwater homes and 4.1 million of these have more than 50% negative equity (the homeowners owe 50%+ more than their homes are worth).
- The total negative equity is $771 billion.
What this graph doesn't show is that there are great variations in the rates of negative equity around the country, as shown in this chart:
2 comments:
As Warren Buffet has noted, the size of the hangover is proportional to the size of the binge.
It's no coincidence that the states that enjoyed the biggest housing boom during the "bubble" also now suffer the biggest crash.
Thinking - I'd say you are dead on (from not an econ person, but one whose job tied loosely to housing).
I actually think it'll take longer for this statistic to completely even out, maybe up twice as long as the bust. Mainly because lender allowed for abnormally loose requirements in the bust that some homeowners maxed out their leverage (w/ the 0% down verse 80/20 rule as been the norm).
Post a Comment