American homeowner’s percentage of equity in their homes has fallen below 50% for the first time since 1945, reaching a low of 47.9% in the fourth quarter of 2007.
The current amount of equity held by Americans in their homes: 9.65 trillion dollars.
More evidence of the difficulty in the housing market: Moody’s is estimating that 10.3% of homes will have zero or negative equity by the end of March.
Blamed for the increasing slide in equity are cash-out refinances, HELOCs and 100%-financed sales.
For the real estate investor, this latest reading on the US housing market should be viewed positively. It’s one of the few indicators that there is still a lot of equity out there for the investor who is capable enough to get out and find it. It may not be in pre-foreclosures, or in expired listings, but it’s out there, and there’s $9.65 trillion dollars of it out there.
Photo: empty, originally uploaded by Northern Country Boy.