From staff reports
About two-thirds of homeowners who are still living the same house they were in 10 years ago when the Great Recession began have reported that their home is worth more now, a new Bankrate survey revealed.
The survey found that 23 percent said the value is about the same as it was in December 2007, while 11 percent said their home is worth less now.
Forty-six percent of homeowners said their property lost value from December 2007 to June 2009. More than 20 percent who reported that their home lost value during the Great Recession said the home never regained its pre-recession worth. One in 10 whose home value depreciated said they don’t want to own a home now, and 23 percent said they now have a more affordable home and/or mortgage.
But when it comes to the overall economy, 23 percent of Americans who were adults when the recession hit said their overall financial situation is worse than pre-recession. One in four said they’re doing the same now. Just 51 percent said their overall financial situation is better.
Only 14 percent said they were not negatively impacted by the recession, compared to the 26 percent who said they were. The recession seems to have impacted women the most — 27 percent said their overall financial situation was worse, compared to 19 percent of men.
Less than half of those Americans who were adults at the time of the recession say their wages/salary are better than before the recession began. More than a third of those who said they or their partner lost a job during the recession report that their pay is worse now. Baby Boomers (26 percent) say their pay is worse now, compared to 16 percent of Millennials who were adults in 2007. Women, low earners, and those with a high school diploma or less were also more likely to report they were making less post-recession.
“The echoes of the Great Recession remain very present in the financial lives of many Americans, despite the improvement in the broader economy,” said Mark Hamrick, senior economic analyst at Bankrate.com. “While some have managed to prosper in the decade since, there are still tens of millions who are struggling to even get back to where they were before the economy took a turn for the worse.”
More than half (54%) of all Americans who were adults when the recession began endured some sort of negative financial impact during that time, including losing money in the stock market (71 percent), losing equity in a home (46 percent), depleting emergency savings (24 percent), losing a job (21 percent), incurring substantial debt (19 percent), and tapping into retirement savings early (19 percent).
Most people who have made changes since the recession have reported focusing on ways to better shield themselves from another one. Almost a third reported they’ve focused on paying down debt, while 23 percent are focusing on saving more for emergencies. Eighteen percent said they were saving more for retirement, while 14 percent are looking for better jobs.
“While the current economic expansion is on track to set a record for duration, there will be a downturn at some point, we just don’t know when,” added Hamrick. “That’s why it is critically important for Americans to try to save now for emergencies and for retirement while paying down or paying off debt. Don’t wait to prepare until after it is too late when a financial storm has already arrived.”
For more on the Bankrate survey, click here.
