A lot of people are going to get to find out how negative equity suffocates an economy. All of those people by the red arrow are now in negative equity. And possibly the blue arrow. I haven't gone back to look at the numbers yet, .....but...
Remember these fun headlines: The East Bay real estate market is so hot, houses are selling for more than $1M over asking price. And that is not even in Silicon Valley proper. It's a burb. Do you know how long it takes to make up a million in equity? I never remember seeing this even in the 2008 bubble.
Now we get all these headlines: Home prices set for double-digit plunge in major Western US cities: Goldman Sachs.
"The largest decrease in home prices will occur in Austin, where values are projected to slump 19% by late 2024 compared to late 2022, according to the note. Prices are expected to sink in Phoenix by 16%, San Francisco by 15% and Seattle by 12%."