Hidden Victims of the Foreclosure Crisis – Video
Fresno, CA (KFSN) — Hundreds of Valley families are paying their rent on time, and still getting evicted. It’s all due to a foreclosure crisis they say they did nothing to create.
The Market Will Hit a New Bottom
Jim Rogers financial guru warned CNBC viewers today the Market has yet to hit bottom. Basically you can’t get out of debt by taking on more debt, 5 to 6 trillion. America is still a debtor nation and until the core issue changes the market is due for another correction. When, that he did not know.
Home Sales at a 7-year low
“The National Association of Realtors Pending Home Sales Index, based on contracts signed in November, dropped 4.0 percent to 82.3, the lowest level since the series started in 2001. That was worse than economists’ expectations for a 0.1 percent drop.” Read the full article here.
“”Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” said Lawrence Yun, NAR chief economist.”
So when will the housing market bounce back?
Dr. Housing Bubble says:
When the employment situation improves.
When wages start increasing again.
When there is a lack of inventory on the market.
I agree.
Los Angeles REO Inventory Graph
Here is a graph of the REO numbers for Los Angeles county. Housing Tracker.net
Date range: 4/07 to 8/08
Total inventory in 4/07 was 212. Total inventory as of 8/08 1175 units!!
Home Prices Drop In Third Quarter
This is a clear sign the housing decline has not reached the bottom. There is another wave of adjustable rate mortgages set to reset in Q4 of 2007 and Q1 of 2008.
Los Angeles home prices declined 7 percent year over year.
Los Angeles has Fallen
All counties are now in negative pricing territory. Los Angeles, the last county in California to have a positive year over year median price, ended last month (October 2007). The median price in October 2006 was $520,000. The median price for October 2007 is $500,000. This is a drop of 3.8%.
“LaLa land†is now in line with all other counties in California. The wave of bad news in the real estate market is now taking it’s effect on the consumer and thus the real estate market.
Riverside County had the largest pricing decline. They showed a 15% decline from last year. The current median is $350,000 versus last year, $412,146. Riverside is facing a foreclosure crisis. They are in the top three highest areas in the country in terms for foreclosures.
They keep company with Stockton which is reporting one foreclosure filling for every 31 households!!!
With credit restrictions making mortgages harder to come by and an exploding inventory (sales down 45% from last year), pricing will give way. Home pricing and incomes will need to align before the decline is over. Housing pundits say we are near to the bottom of this down market. Don’t fool yourself, we still have a long way to go.
Foreclosures Reach An All Time High
I am back. I took some time off to finish other projects, but now it’s time to really get serious about this site. My last post was on April 26, 2007. In that post I talked about the high foreclosure rates and the need for strict lending guide lines.
Wow, a lot has happened since the last post. The Real Estate market has collapsed and the United States is facing a major recession.
Here are a few notable items.
- The value of the dollar is at an all time low.
- Gold is at an all time high.
- Real estate market has collapsed. We have not seen the bottom yet.
- Foreclosures are at record levels
- Credit Card default is looming
- Foreign governments are moving away from U.S. dollar backed investment
- Oil is over $98 a barrel
- Los Angeles has $4.00 a gallon gas
- Major CEOs of large financial companies are resigning
- The NYSE is loosing major value, daily
- Credit is hard to come by
- Large inventory of homes nation wide
Foreclosures Nearly Double From Year Ago,†reads The New York Times.
California, Florida and Ohio are leading the charge in foreclosures. Stockton California has the dubious honor of leading the country in foreclosures.
Foreclosures mean empty houses, and empty houses means more crime… read this story from the AP regarding several communities facing increased crime due to high foreclosure rates.
The party is over and like any bad hangover only time will make it better.
Footnote: This site will be a mix of real estate news, U.S. market trends, economy commentary, and actual foreclosure listings you can, research, and purchase.
tsunami of foreclosures coming
We all knew the outrages adjustable-rate mortgages of the recent past where going to cause big trouble for many Americans. However I think the wave of Foreclosures coming will be very big. Check out this article from BusinessWeek which supports this thoery.
Those easy-mortgage chickens are coming home to roost.This fall the adjustable-rate mortgages (ARMs) that millions of Americans took out during the recent housing boom will be reset, and many homeowners will see their monthly mortgage payments shoot up by as much as 20%. According to the Mortgage Bankers Association, of all mortgages financed in 2005, 36% were ARMs — the highest ever.
When will the tsunami of foreclosures hit? – Buying a House – MSN Real Estate
technorati tags:foreclosures
From Boom to Bust
The Party is over! Now the hangover starts…
In data released Tuesday, prices declined in more than 61 of the 275 cities tracked by the Office of Federal Housing Enterprise Oversight. And the deceleration has been fast: The agency reported that the decline in quarterly appreciation was steepest in more than three decades.
technorati tags:Home sales cool, bust
Wave of Foreclosures coming
With millions of adjustable-rate mortgages about to reset this fall, experts expect a wave of foreclosures by Americans in every income bracket. Here’s why they could soar in late 2006 and beyond.
When will the tsunami of foreclosures hit? – Buying a House – MSN Real Estate
It is only a matter of time before people will have to turn in their keys. It’s a sad fact but the adjustable-rate mortgages was a bad idea and Real Estate people were too willing to sell this product. The adjustable-rate mortgages was just a product of the booming real estat market of the past, where people thought valuation would keep going up and rates would stay low.
technorati tags:adjustable-rate mortgages, Foreclosure
