{"id":47731,"date":"2012-06-04T10:00:52","date_gmt":"2012-06-04T15:00:52","guid":{"rendered":"http:\/\/thesocietypages.org\/socimages\/?p=47731"},"modified":"2012-06-03T17:38:58","modified_gmt":"2012-06-03T22:38:58","slug":"housing-market-blues-3","status":"publish","type":"post","link":"https:\/\/thesocietypages.org\/socimages\/2012\/06\/04\/housing-market-blues-3\/","title":{"rendered":"Housing Market Blues"},"content":{"rendered":"

Cross-posted at Reports from the Economic Front<\/a>.<\/em><\/p>\n

Economic recoveries often depend on the state of the housing market.\u00a0\u00a0While an April\u00a0increase in housing prices has led\u00a0many analysts to talk of a housing recovery, U.S. home values still remain depressed<\/a>.\u00a0 According to a Zillow\u00a0real estate research\u00a0report<\/a>,\u00a0they are still some 25% below their 2007 peak.<\/p>\n

\"\"<\/a><\/p>\n

Perhaps the most telling indicator of the state of the housing market is that, as of the first quarter 2012, 31% of all owner-occupied homeowners\u00a0with a mortgage were\u00a0“underwater,” which means\u00a0they had a mortgage greater than the market value of their home.\u00a0As the table below\u00a0shows<\/a>, these\u00a0homeowners owed, on average,\u00a0$75,644 more than what their home was worth.<\/p>\n

\"\"<\/a><\/p>\n

To this point, the high percentage of underwater homeowners represents,\u00a0in the words of Zillow, only \u201ca potential danger.\u201d\u00a0\u00a0That is because \u201cthe majority of underwater homeowners continue to make regular payments on their mortgage, with only 10% percent of the 31% nationwide being delinquent.\u201d\u00a0\u00a0The following figure highlights the percent of delinquent\/underwater homeowners in\u00a0the largest metropolitan areas.<\/p>\n

\"\"<\/a><\/p>\n

At the same time, as Zillow notes:<\/p>\n

With nearly a third of the nation\u2019s mortgaged homeowners in negative equity and the average underwater homeowner having a home value that is 31 percent lower than their mortgage balance, negative equity will prove both to be difficult to fully eradicate near-term and to have pernicious effects longer term as some households continue to encounter short-term financial trouble even with a slowly improving broader economy. Should economic growth slow, more homeowners will not be able to make timely mortgage payments, thereby increasing delinquency rates and eventually foreclosures.<\/p><\/blockquote>\n

In other words, if the economy slows, or interest rates rise, two very likely possibilities, the housing market could deteriorate quickly, intensifying economic problems.\u00a0 In short, we are a long way from recovery.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cross-posted at Reports from the Economic Front. Economic recoveries often depend on the state of the housing market.\u00a0\u00a0While an April\u00a0increase in housing prices has led\u00a0many analysts to talk of a housing recovery, U.S. home values still remain depressed.\u00a0 According to a Zillow\u00a0real estate research\u00a0report,\u00a0they are still some 25% below their 2007 peak. Perhaps the most […]<\/p>\n","protected":false},"author":1853,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[36,12498,8080],"class_list":["post-47731","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-economics","tag-economics-great-recession","tag-housingresidential-segregation"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/47731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/users\/1853"}],"replies":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/comments?post=47731"}],"version-history":[{"count":6,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/47731\/revisions"}],"predecessor-version":[{"id":47759,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/47731\/revisions\/47759"}],"wp:attachment":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/media?parent=47731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/categories?post=47731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/tags?post=47731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}