The New Media Journal | US Housing Value Down $4 Trillion, More People Resigned to Renting

The New Media Journal | US Housing Value Down $4 Trillion, More People Resigned to Renting: "If you've recently had your house reappraised for sale or refinancing, and wonder where the equity went, consider this: Since the real estate boom ground to a painful close about 31/2 years ago, the nation's housing stock has shed from about $4 trillion to $7.1 trillion in value.

A study by Equifax Inc. and Moody's Analytics Inc. says the downturn began in early 2007 and cost $4 trillion through March. The Federal Reserve says the downturn began in the fourth quarter of 2006 and cost $7.1 trillion through March.

To put a $7.1 trillion loss of housing values into perspective, if you bulldozed half-million-dollar McMansions until their cumulative lost value equaled $7.1 trillion, you'd level 14.2 million homes.

Psychologically, this massive loss of equity has changed - at least for now - the view of homeownership as a major source of wealth. 'The perception of homeownership as a wealth builder has suffered a deep setback,' said Center City developer Carl Dranoff. 'People are still buying, but not necessarily as investments.'"

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