PrintIn light of the tremendous losses in equity homeowners have suffered over the past six years and the continued uncertainty surrounding the housing market, the economics of home ownership will make sense only if equity can be protected, Scott Ryles, CEO of Home Value Insurance Company, told the nation’s leading real estate journalists attending the 46th Annual Meeting of the National Association of Real Estate Editors.
“The financial impact of the loss of equity has been devastating, both to the national economy, and to millions of homeowners who rely upon their home’s equity to finance their next home purchase or their retirement. According to the Federal Reserve this month, household net worth declined 40 percent from 2007 to 2010 due to housing price declines, and prices have declined further since 2010. Clearly the days when housing was a safe investments are over,” Ryles said at the opening day of the NAREE National Conference, attended by hundreds of real estate journalists at the Brown Palace Hotel and Spa in Denver.
“Local housing market performance has always varied considerably, with numerous examples of 10 percent, or even 20 percent, downturns in the past 40 years. Looking forward, population shifts will be a prevailing force. Baby Boomers with insufficient retirement assets will be forced to sell their homes to realize their savings to cover living and health care expenses, creating an oversupply that won’t be filled by new entrants to the housing market. Homeowners and today’s home buyers cannot safely assume their homes will appreciate,” commented Ryles.
Home Value Protection provides homeowners an affordable solution to insure their equity.
“Many Home Value Protection policyholders live in areas where housing prices continue to decline. These homeowners have experienced an average loss in value of $5507 since taking out a Home Value Protection policy. Homeowners in Georgia have been especially hard hit, with an average decline in home value of nearly $12,000 among policyholders with a loss. Without Home Value Protection, policyholders’ home equity would be at risk, potentially putting them underwater on their mortgage. Instead, policyholders have financial protection and peace of mind knowing they are insured against a housing market that continues to prove difficult to predict,” Ryles said.
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