http://www.zerohedge.com/news/got-primex-short-half-countrys-mortgages-are-underwater On US totals, if you figure average house prices use conforming loan balances, then a repeat buyer has to have roughly 10 percent down to buy in addition to the 6 percent Realtor fee to sell. Thus, the effective negative equity target would be 85%. You also have to factor in secondary financing, which most measures leave out. Based on that, over 50 percent of all mortgaged households in the US are effectively underwater — unable to sell for enough to pay a Realtor and put a down payment on a new purchase without coming out of pocket. Because repeat buyers have always carried the market as the foundation, this is why demand has not come back. It's as if half the potential buyers in America died over a two-year period of time. no one understands a simple thing... the supply, or number of real estate is skyrocketing. anywhere on the globe. well, maybe except haiti and nepal. the number of mansions, big houses, the number of people who own 5+ homes is shooting through the roof. the prices can only go down. unless israel provokes iran , which may nuke this little country and few U.S. big cities. war is good for the economy, you know.