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What I like to call today's online real estate panic attack home.
Thousands of Americans punch in their home address on this fellow site every day to get a gauge of the value of their common day by day -- hour by hour now biting read.
That leads many to visit the site repeatedly and then pop aspirin or worse despite the fact that zillow dot com continues to show most somebody -- a decline -- some substantially.
Over the years more attention to customers -- there's insists there harm is not one of them.
What's the deal with -- it's -- -- assessments -- rust off he's the chief financial officer of them.
What do you make of that they must see the numbers.
And they must -- to decline but they seem to say not law.
Yes so yeah it's really -- about 40% of Americans think their home has declined in value.
When in fact about 80% of our homes half so there's still would you say decline in value -- year every year from the high eight last -- your career here every year yet.
And so you know people hear all this media talk about declining home prices but everyone thinks oh not my house and must be happening to my neighbor's house.
And you know it's it's kind of standard psychology people always think.
You know that can't possibly happen to me -- must be happening to somebody else.
And that psychology goes into the pricing of their homes when they sell their homes right date.
They refuse to budge even though the map on your site shows that the -- and what they think it is race that.
And they they kind of keep this faster and it.
It doesn't you know about a third of the homes that sold in this most recent quarter according to zillow.
Sold for a loss so the seller actually sold for less than it.
Paid for what they ask you about that when I heard that -- -- -- -- now does that include people who attack their homes for equity loans mortgage line's credit lines that sort of thing.
That if it was just got -- mortgaged the initial mortgage they wouldn't be in the -- No that's just looking at the actual sale price today so all the homes assault in the second quarter what -- -- -- for.
Vs what somebody paid for them you know X years ago -- -- -- -- you know how many acts as a result of how many years so there's so.
Well the average person sell their home every five to seven years so of the office someone who -- quiet here is certain good chunk of them are under water today and that was -- -- had the market well.
Yes a one in seven American homeowners nationwide no matter when they bought their home is underwater today on their home meaning they -- more to the bank than their home is worth.
People that bought at the peak in 2006 that's about wanting to but yeah looking even back a couple of years home prices have declined rapidly enough and we're leverage enough society then unfortunately one in seven homeowners now are upside down Alonso what's prompted isn't only the decline in the real -- but the fact that they were so heavily leveraged you have a lot of these -- -- 100% loans 9590%.
Equity to -- -- And that puts them again it's the -- Exactly and you have parts of central California for example or Detroit Michigan where.
You know eighty to 90% of people who bought their home in the last three years or so are in negative equity and that's because.
On average they were putting down zero to two or 3% when they bought their home.
When you have that little equity in your home even a slight decline in your home value can put you into the -- make you upside down on line to UC NN that is just aren't there any sign at all from your vantage point that it's turning or at least the worst is behind.
Well -- data shows that the rate of decline continues to accelerate so this last quarter was the sixth quarter in a row of declining home values.
And I was actually worse than any prior quarter so simple technical analysis of what's happening to the data says no we're not at the bottom yet.
I think one of the only promising signs that I've seen is that.
More sellers are actually accepting a -- you know a third of them are now selling at a loss which means they're starting to get a little bit more realistic about what their home is really worth and it's starting to move inventory that we are definitely not the bottom yet in my -- real quickly when is the -- Well it's certainly not 2008 and Alan Greenspan says early 2009 I think that's gonna turn out to be too optimistic but I'll we'll have to wait say.
Harassment -- -- a lot of people listening to with razor blades pose a terrorist or is it took inducements and -- -- and -- -- very much in Seattle thank you --
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