Home Owners: How much % crash before you're upside down?
Given that you have a rough idea of the current market value of your house as it stands today (Spring 2017), and assuming that it is currently higher than what you paid for it (disregard your cash downpayment for simplicity of this poll). How much would your local RE market need to crash/correct before your house is appraised LESS than what you paid for it (in the last 6 years)? In other words, how much of a dip in RE prices could you sustain before you start getting worried that if you had to sell, you would likely sell at a loss?
Could you sustain a 20% dip?.... a 50% dip?
Personally, I sold my starter home and bought a 4 bed/4 bath resale in September 2015; and given the run up of prices in my area since that time; it would take a "crash" of at least 22% before my valuation would be upside down. However, based on actual cash invested in my home (based on the equity gains/cash invested from my starter home sale), the market would need to crash by 42% before I'm upside down on my mortgage owed.