One Third of New Owners Owe More Than House Is Worth

[katty]

more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a3uzhDOF9FXI&refer=worldwide

One Third of New Owners Owe More Than House Is Worth (Update1)

By Bob Ivry

Aug. 12 (Bloomberg) -- Almost one-third of U.S. homeowners who bought in the last five years now owe more on their mortgages than their properties are worth, according to Zillow.com, an Internet provider of home valuations.

Second-quarter home prices fell 9.9 percent from a year earlier, giving 29 percent of owners negative equity, said Zillow, the Seattle-based service that offers values for more than 80 million homes. For those who bought at the 2006 peak of the housing market, 45 percent are now underwater, Zillow said.

Negative equity and declining prices are making it difficult for homeowners to sell property for a profit. Almost one-quarter of U.S. homes sold in the past year were for a loss, Zillow said.

[phantom power]

1. 1/3 of homeowners are upside down. Wow.

[angstlessk]

2. luckily we sold our home for a profit as we never took the equity out

then using what we made from that sale we purchased a home for cash..and trust me..it is worth WAY more than we purchased it for...

[Dr.Phool]

3. Good thing I bought 6 years ago.

Right after that things took off.

It's probably worth a little more than I paid for it now, and I put 25% down, so I'm OK.