appreciation: When will house values rise back to equal what is owed? - 05/15/11 09:52 AM
Millions of homes are “underwater” or “upside down”, meaning the debt is higher than the value of the property.
I am often asked variations of the question “When will home values rise back to equal what is owed?”
I never want to sound negative, but the answer is measured in years.
Here’s a simple math problem to make the point
If you have $100.00 and you lose 50% of it, you now have $50.00 left.
If your new balance of $50.00 now goes back up by 50% (fifty percent), it is only worth $75.00.
Because 50% of $100.00 on the way … (45 comments)