Somewhere I heard or read the equity in homes is the worst ever, somewhere around 50%. I was just thinking as RE drops so does the equity percentage. If homes do go down another 25% that picture gets pretty ugly. Seems like all that money just disappearing would make people slow down quite a bit.
Most people who have bought in the last 2 years are probably lucky to have any equity at all, much less 50%. Another reason national averages can be misleading. A lot of people are upside down.
We’re starting to see the shift most of here have known to be coming for a few years now: the market peaked, people are out of money, and things will slow down a lot.
There’s an article in the LA times today about the cable TV shows that thrived off the housing boom now being revamped for a changing market.
Mainstream is just now catching on and saying, “yeah, we knew this was coming” when we know for a fact they were the ones calling the bottom a year ago. Or maybe now they just listen to people like Rich who saw the emotional, irrational exuberance from the get go.
Good point. This topic ties into “those whoe made a lot of money.”
If people made a lot of money, it’s somewhere else, and not in their homes. The stats show that home equity is at an all time low.
The exotic loans have allowed people to tap their equity for consumption. The equity is long gone. Sure some people did well, but the general population does not have much equity to show for.
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