Want to know why the mediocre Case-Shiller numbers that we’ve gotten in recent months are such a huge deal?
Think underwater homeowners.
According to the New York Times, the “stalling” market means that underwater homeowners will hit 5.1 million this June, up from 4.5 million in Q3 of last year.
And of course, that means a lot more folks simply deciding to walk away, such as the main character in the Times’s piece:
In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.
“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”