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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (17318)	2/14/2004 2:10:42 PM
From: Tradelite	Read Replies (2) \| Respond to of 306849

Would be interesting to know the source of that figure on percentage of people whose homes are paid for in full. I paid mine off, but no one knows this except my lender--and that lender wouldn't know whether I still own the place or agreed to sell it to my cousin the next day in an installment sale with a privately held mortgage.

To: Tommaso who wrote (17318)	2/14/2004 2:24:35 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

So if home prices on average were to decline by 25%, a very large portion of the home-owning population would lose all or most of their equity in their homes yes, on average, they would have 0% equity. quite amazing, especially when you think how recently prices were 25% below present levels. while Wall Street is busy being unanimously bearish on US Treasurys, consider that home "affordability" has become a direct function of the 10yr yield. i imagine a 150-200bp rise in the 10yr could effect a total wipeout of home equity among mortgagees, on average.