Homeowners today have seen their equity shrink to the lowest percentage since the 1940’s.
Average home equity plunged from more than 61% at the start of 2001 to 38% earlier this year. While that drop does not come as a surprise, it comes as home prices in many major cities, such as Miami, have reached their lowest levels since 2002.
And we are not out of the woods yet. Many experts would not be surprised if property values decline another 10% to 25% in the next 5 years.
Indeed, a backlog of foreclosures are poised to hit the market which means prices may still be depressed. Given the high number of both unsold properties, and foreclosures still in inventory, home builders are dissuaded from starting new construction projects.
Also, the housing recovery is also being dampened by high unemployment coupled with stricter lending practices by many of the nation’s leading banks.
Struggling homeowners should contact our office to meet with one of our Miami foreclosure defense attorneys today. Those who are in danger of losing their home to a foreclosure should examine the situation, with the aid of one of our attorneys, in greater detail.
Homeowners have many alternatives available to them to fight a foreclosure or even shrinking home equity. But homeowners must be armed with as much information as possible to decide what is best for them regarding the ongoing foreclosure crises.