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Showing posts with label drop in equity. Show all posts
Showing posts with label drop in equity. Show all posts

Thursday, January 21, 2010

Toting Up the Equity Hit

The $7 Trillion Hole in the Economy

Would you be tightening your belt if your house had dropped $50k-$60k in value in the last four years?

Probably.

And if you'd taken out a home equity loan against your home when it was worth $50k-$60k more . . . almost definitely.

Now, take that $50k-$$60k drop in home equity, and multiply that by . . . . every homeowner in the country.

Yup, that's how much the average homeowner is down since 2006 ($54k per home, to be precise).

That equates to a national average 30% drop in home prices from the peak, or over $7 trillion in shrunken home values.

Hmmm . . . could be that that something to do with the not-so-robust economy (at least away from Wall Street).