We already know negative equity is plaguing millions of Americans nationwide, but perhaps worse is the fact that many won’t see any positive equity for many years to come, according to First American CoreLogic.
In fact, the typical homeowner who is currently underwater on their mortgage won’t see positive equity until 2015.
In the hardest-hit markets, homeowners won’t get back in the black until 2020, and even then, if they were to sell, they’d probably still take a loss thanks to associated fees and commissions.
So where is it going to take a while?
Well, in Detroit, Michigan, 2020 equity for current underwater borrowers will still be -$7,156…yep, it’ll still be in the red into the next decade.
It’s a little better in Las Vegas, but still pretty dismal – Sin City underwater homeowners can expect 2020 equity to be $1,039.
That’s probably not the best news, but I suppose it’s better than owing money on your home.
There are some winners out there though, in places like Boston, where 2009 home equity of -$130,452 is expected to be $77,158 in 2020; Washington D.C. is displaying similar numbers.
More than 11.3 million, or 24 percent, of all residential properties with mortgages were in a negative equity position as of the end of 2009.
In Las Vegas, 70 percent were underwater, followed by 51 percent in Arizona and 48 percent in Florida.