A Nation Underwater and California is Under That

There is a huge pool of underwater homeowners in America.  Almost 14 million homeowners have a negative equity position, actually.  And that number grew 1.5% last month from the previous month.  So, is the housing market recovering?  Nope.

Not only do we have a huge inventory of bank-owned homes that have been listed for sale (I mean HUGE), now we have about 14 million homes where the homeowners are paying a mortgage that is bigger than what the house is worth. How long do you think they will keep paying their mortgage?  Most have already stopped.  Many of those homes will end-up being owned by the bank, too.

While the national home prices are down 4.4% year over year, the LA market is down 5.9%.  Prices are coming down, folks.  Not to mention, Greece, unemployment, recession.

If you are considering selling, don’t wait for the market to turn around.  It could be decades before prices come back.  Don’t kick yourself later for not selling now.

Photo Credit: Flooding in Minot by DVIDSHUB