Study: Half American Homes Underwater by 2011 | NBC Bay Area

Study: Half American Homes Underwater by 2011

A new study suggests the number of American homeowners owing more than their house is worth will grow dramatically in the next two years

    processing...
    Country
    Total
    1
    United States
    463738121
    2
    China
    26182670
    3
    Great Britain
    27231767

    NEWSLETTERS

    If you're feeling squeezed between your mortgage and your home's worth - you're not alone.

    By 2011, nearly half of U.S. homeowners will owe more than what their house is worth, according to a report released Thursday.

    The percentage of “underwater” loans may rise to 48 percent or 25 million homes according to the study released by Deutsche Bank.

    “I would be surprised if it gets that bad,” analyst Mark Zandy told NPR Thursday. “It’s bad and it’s going to get worse but it sounds a little pessimistic to me.”

    The report suggests seven markets may even find 90-percent of borrowers underwater. You can breathe easy, San Diego is not among them. The markets listed are Fort Lauderdale, Miami, Merced, Modesto and Las Vegas.

    Buckle in for this last factoid – home prices are expected to decline another 14 percent on average according to the analysts.