It isn’t just that people are underwater. That is less than 10%. It is that the average homeowner now has less than 50% equity. I hadn’t heard this statistic before.
Perhaps if things are so obvious to you, you can tell us how this is all going to play out?
In any case, I think this helps mark a big psychological shift in homeownership thinking. The house-as-an-ATM mindset will gradually be a thing of the past as it never should have existed in the first place. That along with everyone thinking it is prudent to buy a home with 0% down.
