Home Equity Slips Below 50%
Homeowners’ debt on their houses exceeded their equity for the first time since the Federal Reserve Board began tracking it in 1945. The housing bubble has caused house prices to decline down to 2003/4 levels wiping out much of the equity many people put into real estate during the last 3 years. But the real estate market will recover, it is merely a question of when – maybe 2009, probably 2010. Home buyers who can pursue hold strategy, retaining their homes for at least another 3-5 years should come out ahead.

