I discussed an article i just recieved from the California Association of Realtors and the findings of a group called First American CoreLogic. The results may surprise you.
Hello everybody and welcome to another episode of The Reside Daily Bite; I’m your host, David Doucette. We’re coming to you a little later in the day than usual so I don’t have my northern light as the sun had set; so, I have my artificial light which I use when I shoot these but it’s a little different now. Hopefully the lighting still works.
One thing that I want to talk about today is an article that came out from First American CoreLogic couple of weeks ago and I just received it to the pipeline of the California Association of Realtors and the article is titled “How Long Will Negative Equity Last?” This is the first time I’ve seen a study that has put numbers on exactly how long they think negative equity is going to be hanging around for homeowners and obviously that is going to depend on area markets. They looked at 10 markets. “The First American Core Logic estimates that the typical US homeowner who is in a negative equity position will not experience positive equity until late 2015 to early 2016” -that’s 5 or 6 years away. And again, this is the first time I’ve seen somebody start to put numbers to this and it sounds like it’s a long time away and it kind of is a long time away.
I remembered hearing Suze Orman talked few months ago and she was saying at 2013, 2014, 2015 is when we’ll start climbing out of this mess.
(If you were listening yesterday, off to the side, I’m really trying hard to work on my “aahs” and I’ve been restricting a few of them. I’ve been catching myself so that’s good).
So the negative equity is going to be hanging around for a while and some of the markets they talked about are Boston, Quincy area at 2017; Cape Coral-Fort Myers area, which is been hugely hit in Florida, at 2020; next to us, Riverside-San Bernardino-Ontario area (east of us here, Los Angeles) projected 2016.
So, what’s the point of all these? I actually don’t have one. It’s information that I wanted to just share and talked about -`this negative equity. Now, if you’re planning on staying in your home for the foreseeable future, this really isn’t an issue; it becomes an issue on paper. But it’s when those people need to sell for whatever reason, that’s when this becomes more of an issue. So, if you find yourself in that situation where you do need to sell, by all means, talk to your local realtor, talk to your local lender and find out what the options are. If you have any questions or comments: 1-800-476-5579 or firstname.lastname@example.org
My name is David Doucette, thank you so much for checking out The Reside Daily Bite.