At the end of 2006, there were approximately 3.5 million U.S. homeowners with no or negative equity. (approximately 7% of the 51 million household with mortgages).
By the end of 2007, the number will have risen to about 5.6 million.
If prices decline an additional 10% in 2008, the number of homeowners with no equity will rise to 10.7 million.
The last two categories are based on a 20%, and 30%, peak to trough declines. The 20% decline was suggested by MarketWatch chief economist Irwin Kellner (See How low must housing prices go?) and 30% was suggested by Paul Krugman (see What it takes).
Here's the graph he produced:
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