It will probably come as no surprise that 69% of all homes in foreclosure are also underwater, according to a recent report. Or does that come as a surprise? Since only 16% of all properties are “equity rich” (meaning they’re 50% above water) it’s a tough market for anyone.
Chances are you’re underwater on your mortgage if you have one, and chances are you’re struggling financially, since most of the country is. So that’s a tough combination to handle.
But what to do about it? Where does the cycle end? Besides the obvious (hello, short sales anyone?) it’s going to take some time but the situation is turning around. The impact that real estate investors are having on the market is having a “trickle up” effect, fixing the housing market then moving up to all levels of the economy,
I’m maintaining a strong “buy” rating for 2014. I see the signs all around us that “recession” will become a dirty word in the coming months. What other signs do you see? Share your observations here.