The amount of equity American’s own in their homes is at the lowest it has been since the Second World War. Relevant statistics include:
- In 2001, American’s owned about 61 percent of the equity in their homes. Today Americans own 23 percent less equity in their homes.
- House prices have reached their lowest level since 2002.
- 25 percent of homeowners in the US owe more on their mortgage than their house is worth.
- Another 25 percent are nearing the point where they have negative equity.
- Household debt has declined two percent annually, showing American homeowners are more interested in paying off debt than growing the economy.
- Spending by consumers makes up 70 percent of the economy.
- Average household debt is down from US$125 000 in 2008 to US$119, 000 today.
- Mortgage debt represents 72 percent of overall debt in a family.
- Housing foreclosures continue to drive down prices.
- Americans paying off their mortgages may not see any rise in home equity.
The housing market is expected to stay in decline until the country is fully lifted out of the recession. For all of the details, read this Globe and Mail article.
For more articles on the state of the economy, follow the links:
- Canadian Mergers and Acqusitions Market Report Declines
- Canada’s Trade Deficit
- China Against American Debt-Default Plan
- Recession News: Stronger Growth in Second Half of Year
If your small business is struggling because of the recession, contact the Winflow Financial Group. Our consultants will work with you to make a personalized plan of action for your business.
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