Underwater Homeowners Taking New Gambles on Real Estate

The Wall St. Journal reports that some homeowners are selling their underwater homes at a loss and turning right around and investing in new homes with lower mortgage rates and getting more house in the process.

Why invest in a market that has already burned you badly? Historically low mortgage rates mean that buyers can buy new homes and keep their monthly payments low even though the new homes are more expensive.

M.P. McQueen has the story:

"The attractive terms are spurring people like Scott Ayler, 35 years old, into action. He and his wife, Jaclyn, 33, recently decided to trade up to a larger home in their native Denver, despite taking a loss on their current house."

Full Story: Doubling Down on Housing

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $16.95 a month

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00
Book cover of Unsprawl

Unsprawl: Remixing Spaces as Places

Explore visionary, controversial and ultimately successful strategies for building people-centered places.
Starting at $12.95