33% Underwater — Radical But We’re Sorta Sticking To It — Another Point of View

by Ken Kappel on December 16, 2011

Well well well. Numbers are light in the chart below, compared to recent Zillow reporting of 28.9, underwater. What we really like in this very graphic report is that they show numbers for folks who are NEARLY underwater. And, we’ll bet, there numbers are light there as well. Meaning more Nearly Underwater than they report.

Overall, this is important. What is great is that you can drill down to your state for the real story. Our point is that when you see nearly across the board reporting of another 4% of homeowners being Nearly Underwater, and, then you factor in an additional cost of 7% for sales transaction fees if they sold soon, well, that pumps up the number of “functionally underwater” homes, we think, to over 33%. Looked at another way. Nearly 33% of 52 million homes with mortgages, or, 17.4 million families are likely underwater. That’s our call, and we’re sticking to it.

To see this remarkable graphic, click here.

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