The following is interesting but is it relevant in the overall scheme of things? I say no!
It does tell me that the economic outlook for NV, AZ, FL, and MI can only get better!
At the end of this post, I have added my opinion about this data and about other data outlined on my blog. This information is continuously reviewed at the national level. And now the data………………………….
11.3 million homes are now worth less than the mortgage
$7 trillion in housing value wiped out since 2006 thru 2009
24% of all homes in USA have negative equity#1 is Nevada 70% of all homes have negative equity
#2 Arizona 51%
#3 Florida 48%
#4 Michigan 39%
Average amount of negative equity = $70,700
And now the consequences of the above……………………….
Equity loans are non-existent
Refinancing is impossible, which feeds default/foreclosures
Inheritances are wiped out, creating debt for next generation
Reverse mortgages are impossible so seniors can only live on Social Security – changes retirement planning
Generation Y will either rent or purchase lower-priced homes due to lower incomes/employment
Buy a home for savings account, tax write-off, investment vehicle, or place to live?
Relocation for job opportunities is impacted – difficult to leave for better opportunities
When will positive equity return? Predictions are 2015 thru 2020 depending local real estate market but a slow recovery
A strong local economy and lower unemployment will break this vicious cycle. Know your own local market. 
No comments:
Post a Comment