San Diego Ghost Equity – Homeowners Reality
San Diego homes for sale
San Diego real estate: Why are many homeowners not selling? In my opinion, it’s because of ‘ghost equity!’ In 2005 their home may have sold for $700,000, but today the real market value could be $500,000. This lost $200,000 ‘ghost equity’ is something a number of homeowners cannot accept.
The San Diego homeowners do not want to face reality and accept a huge hit to their perceived equity. Even if they have positive equity in today’s market place, mentally they are resigned to staying put until their ‘ghost equity’ re-appears!
What some of the delusional homeowners may not realize is that unless their mind-set changes,and they give up the ghost, they may be living in their current home for many more years than originally expected.
San Bernardino estate lawyers
San Diego Homeowners – 12 Years To Recapture Lost Equity?
home equity recovery
No doubt, San Diego is seeing a few green shoots in the housing market. This is especially evident in the low end of the San Diego real estate market. However, I don”t advise joining the overly optimistic crowd who are expecting four years of home value erosion to be quickly recaptured.
In a report from HSH associates, a Pompton Plains, N.J., financial publishing house, they stated:
“According to the Standard & Poor’s Case-Schiller Home Price Index, the popular measurement that tracks changes in the value of residential real estate in 20 metropolitan regions, prices have fallen 32.6 percent, peak to trough, between 2006 and the third quarter of 2009.
“Then from July 2010 through August 2011, a period of 14 months, prices are projected to increase at a rate of about 2.5 percent a year. And from then on out, the company is figuring on a yearly gain of 3 percent.” Read more 
Homeowners – 1 in 5 Owe More on Mortgage Than Home’s Value
As the housing market has collapsed, roughly one in five homeowners now owe more on their mortgage than their house is worth. That’s created one of the thorniest problems in the debate over foreclosure relief: Who should bear the loss when a mortgage is bigger than a home’s value? Various proposals have been floated, including having the government share some of the loss in return for a stake in the possible appreciation of the home after it’s refinanced. downtown San Diego real estate