What I think Kewp means is the equity they may have (assuming they didn’t tap it with a HELOC) is only gained when they sell. Equity is essentially useless unless you’re borrowing against it or selling the asset. (or for bragging rights)
Exactly. Show me an offer before you claim what your house is *worth*. Otherwise you are just playing the same ‘mark to fantasy’ game the banks are.
It’s important to note that the market hasn’t capitulated yet. The banks are still holding onto their inventory and collecting mortgage insurance. Once the insurers go under the banks are going to be forced to sell off their non-performing assets to the vulture capitalists, which is selling anywhere from one to about twenty cents on the dollar at the moment. We have a long way to go to the bottom.
I personally see 1989 prices for the most distressed properties (IE, condos, ghetto) and better areas settling at around ’99-00 levels.
