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Zero national real estate equity?

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  • Zero national real estate equity?

    (from Fed report mid 2008)

    Net national mortgage debt in 2007: $10.5T
    Net national mortgage debt in 2008: $10.6T (estimated)

    Net national housing value in 2007: $20T
    Net national housing value in 2008: $19.7T (estimated)

    Then we get this:

    http://www.usnews.com/blogs/the-home...sing-bust.html

    The declines mean that U.S. homeowners lost a cumulative $3.3 trillion in home values during 2008, with much of that loss coming in the fourth quarter. Homeowners lost $1.4 trillion during the fourth quarter alone; more than the $1.3 trillion lost during all of 2007. Since the housing market's peak in 2006, $6.1 trillion in home values have been lost.
    Now of course the far above and the Zillow data are not the same source, but if approximately similar, that means net national home value is now around $14T while net national mortgage debt is probably still over $10T.

    Or, another 20% loss in home values vs. peak means net national home equity equals ZERO!
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