Homeowners haven’t seen such a low percentage of equity in their homes since World War II.
After seeing home values double from 2000 to July 2006, and seeing close to 61% equity in early 2001 families have been devastated by the low 38% equity that was reported to exist on many loans in the first quarter of this year.
Analysts predict home prices will continue to fall in direct effect to foreclosures continuing to come on the market.
Robert Shiller, co-founder of the S&P/Case-Shiller index, stated at an S&P conference on Thursday that he estimates a further decline in property values as much as 10% to 25% in the next five years in some markets. Shiller went on to say "There's no precedent for this statistically, so no way to predict."