US homeowners lost $108.4 BILLION in equity this year - leaving more than 200,000 at risk of going 'underwater' if property prices fall another 5% 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.
And if prices tumble by 5 percent more than 200,000 households could be at risk of falling into negative equity - otherwise known as 'going underwater' on their home loans.
Negative equity occurs when an individual's outstanding mortgage balance is more than the value of their property.
In a strong market, homes should appreciate in value over time - meaning borrowers have little risk of falling into negative equity.