Wednesday, October 08, 2008

Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water' -

Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water' -
"The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year.

The result of homeowners being 'under water' is more pressure on an economy that is already in a downturn. No longer having equity in their homes makes people feel less rich and thus less inclined to shop at the mall."
Even with the slide in real estate, the 1/6 number is hard to believe. You figure some fairly large percentage has house paid off, others close. It would be really fascinating to see the numbers on that. I am sure they are out there.

As for the numbers they do give, look at Southern California, Las Vegas, and Miami. Wow.

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