While I do not believe my family is underwater in the value of our home, after almost nine years of living here, we are only at the “break even” point.  That is absent any real estate agent fees that would be paid if we chose to sell.  That is if there is no further job loss.  That is barring any major medical problem and falling behind on payments.

According to MSNBC.com, 29 percent of all homes are now underwater.

Homes with underwater status are often considered risks for future foreclosure, since owners could have trouble refinancing or selling and may opt for a foreclosure via “strategic default” if they feel they will never regain their lost equity.

[Stan] Humphries estimates that home values will bottom out in 2012 at the earliest and said the foreclosure market will remain “robust” for the next two to four years.

There are a lot of unknowns in this  never-before-seen housing market, but it will eventually return to normal.

However, in the informal world of the feel of everyday man on the street, there actually has been a peep of consumer confidence by some long-time businessmen in my community. There is now talk of developing a small shopping area behind one of our local grocery stores.