I was reading a recent report by the Federal Reserve that stated that the total equity for homes in the U.S. was at its lowest point since 1945. As a matter of fact, the equity ratio is actually below 50% for the first time ever (they only have statistics back to 1945). What this means is that the American public for the first time owes more on their houses than the equity that is in their houses. Since 1945 we have been through multiple recessions and economic downturns, but this is a first.

A few other stats from the released report:

• 8.8 million homes (a little over 10%) have zero or negative equity
• Homeprices have fallen 8.9% in the last year
• If home prices fall another 20%, 13.9 million homes will have negative equity

These are dark times for the real estate market, and I do not believe we have hit the floor yet.

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