Spare the lifeboats in most places as Redfin reports that only 3.4% of U.S. homeowners who bought in the last two years would be underwater on their mortgage if home values were to fall 4% by the end of 2023 or they lose their jobs.
Prices would need to fall by double digits in 2023—a highly unlikely scenario—for the typical pandemic home purchase to lose value, the real estate brokerage said.
Homebuyers in Sacramento and Phoenix are at higher risk of falling underwater on their mortgage, while Florida homeowners are at even lower risk.
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