I stumbled upon a July investor update by Freddic Mac, and learned some unsettling facts.
- Homeowners had more equity in their homes in 2001, before the real estate bubble than today.
- At the peak the enterprise value of US housing was approximately $23.5 trillion. Today, it’s $16.5 trillion, meaning $7 trillion of wealth has been destroyed.
- The average growth rate of nominal house prices is 4.5% which is higher than inflation.
- Since June 2006, national home prices have experienced a cumulative decline of 20%
- In the past year, 41 out of 50 states saw further declines in property values.
