10 July 2023
Homeowners face a negative equity timebomb as property values decline, resulting in a collective loss of $108.4 billion this year. In the first quarter of 2023, the average borrower experienced a decrease of $5,400 in home equity compared to the previous year. Washington, California, and Utah are the most severely affected states. If prices continue to drop by an additional 5 percent, over 200,000 households could find themselves in negative equity, putting their home loans at risk.