Half Of US Homeowners Will Be Underwater By 2011

 

Last week, Deutsche Bank analyst Karen Weaver published a report that shook up the "housing is recovering" crowd.  She predicted that, by next year, nearly half of American homeowners with mortgages will be underwater

Before we go into the details, here's a basic refresher on the US housing market:

• There are approximately 110 million households in the U.S.
• About 75.5 million of these are homeowners.
• Approximately 68% of the 76 million, or 51.6 million, have mortgages.
• 14 million U.S. homeowners, 27% of those with mortgages, were underwater at the end of Q1 (DB estimates)
• DB estimates that nearly half of the 52 million mortgagors will be underwater by the end of next year

Click on the following for the link to Ms. Weaver’s web cast and slide presentation:

Half Of US Homeowners Will Be Underwater By 2011

The following is the link Ms. Weaver’s original Reuters article:  http://www.reuters.com/article/GCA-Housing/idUSTRE5745JP20090805