Sunday, 7 June 2009

Half of all Nevada residents have negative equity

Yesterday I drew attention to the fact that in terms of the geographical distribution of foreclosures and personal bankruptcies in the US the sun belt states are the real victims of the current recession.

Here is an excellent piece which amplifies on that theme and just one quote from the article which is well worth reading will make the point very clearly.
A third of Arizona’s mortgage borrowers are now “under water,” according to the real-estate research group First American CoreLogic—meaning that they owe more money on their mortgages than their houses are currently worth. Florida is in similar straits. And in Nevada, almost half of all homeowners have such “negative equity,” including 55 percent of homeowners in Clark County, which includes Las Vegas.
While real estate prices have declined in most of the US the statistics above - and many more in the article cited - reveal how geographically focused the larger bubbles have been.

No comments:

Post a Comment