We never seem to learn.  Over a decade ago, our leaders created the biggest housing bubble of all time, and when it finally burst the entire globe experienced great financial pain.  So did they learn from their mistakes and fix the system?  No, instead they just created an even bigger housing bubble.  Now that housing bubble is beginning to burst, and that is going to have very serious implications for all of us.

One thing that we learned during the Great Recession is that home values really matter.

When home values get low enough, many borrowers simply decide to walk away from their mortgages, and so the fact that U.S. home values have plummeted by 108.4 billion dollars should deeply alarm all of us…

Homeowners are sitting on a negative equity timebomb after losing $108.4 billion on their property values this year, experts say.

The average borrower saw their home equity plummet by $5,400 in the first quarter of 2023 compared to last year – with households in Washington, California and Utah worst affected.

The west coast is being hit particularly hard.  For example, home values in Washington state have dropped by an average of more than $74,000 over the past year…

The cooling housing market is stripping more equity from homeowners in Washington than in any other state in the country.

On average over the last year, Washington homeowners lost about $74,300 in equity, a measure of the difference between how much a home is worth and how much the owner owes on the mortgage, according to the real estate data company CoreLogic. That 18% decline marked the largest drop in the country from the first quarter of last year to the first quarter of 2023.

Some homeowners in Washington state that bought their homes at the peak of the market now have mortgages that are underwater.