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Re: Oh Bloody HELL!
Mean time in Blighty, things are brewing nicely!
http://www.24dash.com/news/Housing/2...egative-equity
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Re: Oh Bloody HELL!
I can't speak to the accuracy of the Deutsche Bank prediction, but the wording of the Reuter's article leaves a bit to be desired. In their opening paragraph, they tell us about half of homeowners will be underwater. But what DB really seems to be saying is it's half of mortgage holders, not homeowners.
The last statistic I saw on what percentage of U.S. homes are owned outright, that number was about 33%- which seemingly implies the other 66% are mortgaged.
So taking the '48% underwater' figure they predict, the percent of homeowners actually affected is about 32%. More like 1/3 than 1/2.
But I do have to wonder- are as many as 48% mortgaged homes bought recently enough that they will drop below the value of their mortgage? I'm not saying they are or aren't, but I'm wondering.
Also, in my own neighborhood (considered a desirable one), there are some pretty strong indicators we are at or near bottom now. I mean the buyers are really jumping in now at these bargain prices and I'm not convinced they will stop even in the face of new ARM resets, as long as these low prices continue. Third party investors are even getting in to the act in a big way and flipping for profit.
I don't necessarily expect to see 2006 prices again any time soon, but I'll be surprised if prices decline much more around here.Comment
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Re: Oh Bloody HELL!
"Parts" is a rather difficult metric to measure. Maybe neighborhoods would have been a better term. At least it adds a dimension of scale. As for referring to Las Vegas real estate as "underwater", that's just mean a reference. Lake Mead is down 125 feet and counting. It's a race between water and economics to see which one delivers the fatal blow to LV.Las Vegas and parts of Florida and California will see 90 percent or more of their loans underwater by 2011, it added.Comment
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