Mark Hanson of MHanson Advisors, researchers and strategists focused on North American and Australian real estate and finance markets, has a very good piece out questioning the recent calls of a housing bottom. His research shows that 20-30 million current homeowners (half the market) either cannot sell and net enough for a downpayment on another house or could not qualify for a new mortgage if they did have a downpayment.
He also charts that out in relation to the over all supply:
Here’s Mark’s breakout of the zombies:
1) “Effective” Negative Equity – 25 million borrowers / houses. These borrowers are dead to the housing market, as they don’t have the equity to pay a Realtor 6% to sell and put 20% down on a new house. They were once the most active participants, the repeat buyers. Now they are “zombie homeowners”.
2) Impaired Credit – 28 million borrowers. These are borrowers with Continue reading Zombie homeowners are 50% of the single family move up market and they can’t buy. Good for Apartment Building Investment?
