"From 2005 through 2007 alone - that is, at the peak of the housing bubble - more than 22 million Americans bought either new or existing houses. Now that the bubble has burst, many of those homebuyers have lost heavily on their investment. At this point there are probably around 10 million households with negative home equity - that is, with mortgages that exceed the value of their houses."
- Paul Krugman, New York Times Columnist
Cooper Jacobs Real Estate LLC: Need a LFP Realtor? - Lake Forest Park, WA
I would like to see the back up data on that one - seems high, but I know the market here is better than many.
Jul 04, 2008 03:08 PM
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
I'd like to see a bit of opinion from the poster. I have no issue with the stats... even though it means that around 12% of households bought a home in this period, and that 6% are in trouble. That is quite a bit higher than most other estimates I've seen.
But more importantly, do you have an opinion on the quote?
Jul 04, 2008 03:11 PM
ALLY Real Estate - Waikoloa, HI
Hawaii Real Estate Expert
Yeah, sucks to be them right now... in fact many are the short sales and bank owned that we see on the market today.
Jul 04, 2008 03:22 PM
ALLY Real Estate - Waikoloa, HI
Hawaii Real Estate Expert
Yeah, sucks to be them right now... in fact many are the short sales and bank owned that we see on the market today.
Jul 04, 2008 03:22 PM
The Auctionarium - Altadena, CA
CAI - AARE
I'd like to see a bit of opinion from the poster.
If you would like to see a bit of "opinion" just check my other posts.
This man from the New York Times is about 2-years late with his advice.
As a full time real estate auctioneer my experience has been:
100% OF THE (POTENTIAL) SELLERS I HAVE SPOKEN WITH WHO PURCHASED 2005 - 2006 - 2007 HAVE NEGATIVE EQUITY.
The entire country from coast-to-coast had hyper inflated prices.
Just take a look at the NAR / CAR figures of Orange County Califorinia having a 28% decrease in values over the past 12-months. We all know the NAR whitewashes their figures so the truth is that values have dereased much more than reported.
If you are asking for "back up data" on the reality of market values for real estate dropping like a rock, you are in complete denial.
Jul 05, 2008 02:16 AM
Taylor 1 INC - Atlanta, GA
"Loan Modifications"
I've also read that by 2010 there may be as many as 15Million Americans with negative equity in their homes! Troublesome indeed!
Jul 05, 2008 02:29 AM
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert
Those that bought with 100% financing within the past 3 years are surely underwater by 10-20% from the peak in late 2005. The markets inside the DC Metro beltway are doing fairly well, much better that further out communities, which have been ravaged by foreclosures. That being said, the economic indicators are looking like they have accelerated their downward slope, we'll strap in tight for the remainder of the ride.
Jul 05, 2008 03:10 AM
DreamDirt Auction - Mondamin, IA
NAR whitewash figures ........ oh come on Billy, I think you are stretching it a little bit there...... if you said they all out make them up I'd be more willing to believe you!!! Whitewashing is giving them to much credit.
Jul 06, 2008 03:18 PM
The Auctionarium - Altadena, CA
CAI - AARE
Al & Jodee:
Property inside the beltway has only seen a 30% +- depreiciation since the peak of the bubble in 2005.
Based on that I would say yes they are doing better than most areas.
Jason:
This site is bascially for real0rs so I do show a bit of restraint when it comes to sharing my opinion of the NAR...
Jul 07, 2008 12:29 AM
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
That doesn't surpise me at all. Although, I would think that there are 10 million alone in California that have done that.
Jul 07, 2008 06:00 AM
DreamDirt Auction - Mondamin, IA
I've read many of your posts in the Auctioneering forums Billy so I know what you "wanted" to say. I have two profiles here on AR, my other auctioneering profile is at www.activerain.com/realestateauctioneer but I make most of my comments from my agent profile.
Jul 07, 2008 07:06 AM
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
while this may be true....homes are selling.....we are seeing multiple offers on properties in our area...it's crazy.
Jul 11, 2008 01:33 PM
The Auctionarium - Altadena, CA
CAI - AARE
With the lower prices getting closer to reality many people are starting to get back into the market.
The best thing about the NOVA market is the 2-million government jobs based in and around the beltway.
We have an auction coming up in Southern Maryland for an McMansion (4,362 Sq Ft executive Home) on the other side of the same market area and have been getting lots of interest.
Problem is, the house our sellers paid $795,000.00 for a few years ago will have a hard time breaking the $500,000 price point so it will either be a short sale or if rejected they will simply give a deed in leiu of foreclosure... And they have never missed one single $6,300 payment!
With Fannie Mae and Freddie Mac offically being declared insolvent you are going to see a spike in bank failures and a new tidal wave of REO's and foreclosures hitting the market starting towards the end of the third quarter right after the election.
Hold on to your hats we are getting ready for a BIG dip on the roller coaster!
Jul 11, 2008 01:53 PM
Rainer
28,223
28,223
Billy Burke
CAI - AARE
Recent Posts
Home Selling
over 14 years ago
Commentary on the American real estate market from an auctioneers point of view.
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