Some healthy signs we are shufting as a culture in the numbers. The average household owes nearly $119,000 on mortgages, credit cards, auto loans and other debt, according to an Associated Press analysis of government data. That’s down from more than $125,000 in 2008.
Normally when people pay down their mortgages, they see their home equity rise. But since the housing bubble burst in 2006, prices have fallen more than they did during the Great Depression…thus In many cases, people are paying off mortgage interest and losing equity at the same time.
-There are 74.5 million homeowners in the United States.
-Nearly 25 percent of those homeowners are “underwater,” which means they have negative equity in their homes, according to the private real estate research firm CoreLogic.
-Another 25 percent are nearing that point.
Homes in foreclosure sell at a 20 to 30 percent discount on average, which hurts prices throughout the neighborhood.
Many foreclosure sales have been delayed while federal regulators, state attorneys general and banks review how those foreclosures were carried out over the past two years. Once those homes are foreclosed upon, they will cause prices to fall even further.