Ugh... Still in the top 10.
Good news is we aren't #1.
1. Detroit 4.9%
2. Stockton, Cal 4.86%
3. Vegas 4.2%
4. Riverside 3.8%
5. Sacramento 3.2%
9. Denver 2.6%
These of course are 2007 foreclosure statistice provided courtesy of Realty Trac. The US Average is a 1% foreclosure rate.
There is no doubt its a buyers market. Plan on living in to your place for 5 years or keeping it as a rental property.
Showing posts with label Housing Statistics. Show all posts
Showing posts with label Housing Statistics. Show all posts
Feb 14, 2008
Nov 28, 2007
Problems...
The real estate industry is going nuts. We all see the news, read the horror stories and witness giants such as CITI and Countrywide scramble while their stock prices tumble and tumble and tumble...
Rust Belt city mayors recently met to discuss the mortgage mess. With all of the media hype, government officials are calling for changes. They are calling for help. The question is... will help arrive?
I hope not. Here is why. The mortgage mess is due to a few factors.
1. Lack of Consumer Education. Borrowers were told two things:
-Your credit will improve. This is true IF you embrace responsible spending.
-Your home will appreciate. Long term, this is always true. Short term, there are no guarantees. This is especially true for borrowers who didn't treat their home as an investment.
2. Greed.
-Wall Street was getting rich. Can you imagine 1% of hundreds of billions of dollars? -Brokers. While Wall Street was getting fatter than fat, individual mortgage brokers seized the opportunity to gouge clients on their loans.
-While 1% of hundreds of billions is hard to imagine, a $10,000 profit on a single closing hits a little closer to home.
3. Government -A president who wants to increase home ownership (Great principle, but the means to this end has proven errant).
-Greenspan. The jury is still out, BUT interest rate cuts made unaffordable homes, very affordable (for the time being).
Looking for solutions? Check out the next post.
Rust Belt city mayors recently met to discuss the mortgage mess. With all of the media hype, government officials are calling for changes. They are calling for help. The question is... will help arrive?
I hope not. Here is why. The mortgage mess is due to a few factors.
1. Lack of Consumer Education. Borrowers were told two things:
-Your credit will improve. This is true IF you embrace responsible spending.
-Your home will appreciate. Long term, this is always true. Short term, there are no guarantees. This is especially true for borrowers who didn't treat their home as an investment.
2. Greed.
-Wall Street was getting rich. Can you imagine 1% of hundreds of billions of dollars? -Brokers. While Wall Street was getting fatter than fat, individual mortgage brokers seized the opportunity to gouge clients on their loans.
-While 1% of hundreds of billions is hard to imagine, a $10,000 profit on a single closing hits a little closer to home.
3. Government -A president who wants to increase home ownership (Great principle, but the means to this end has proven errant).
-Greenspan. The jury is still out, BUT interest rate cuts made unaffordable homes, very affordable (for the time being).
Looking for solutions? Check out the next post.
Oct 8, 2007
MSNBC Agrees
Here is a recent article concerning new build homes. I've already written a blog on the topic. For more info, check out this link http://www.msnbc.msn.com/id/21151323/ and scroll down my blog to find 'Don't Buy New Homes.'
Can you imagine buying a home with an adjustable rate mortgage at the peak of the boom with hopes of double digit appreciation only to find yourself $25 - $50,000 upside down only two years later?
These people are left with two difficult choices:
1 - Eat the adjusting payments
2 - Lose the home to foreclosure
Horrible. Horrible. Horrible....
Can you imagine buying a home with an adjustable rate mortgage at the peak of the boom with hopes of double digit appreciation only to find yourself $25 - $50,000 upside down only two years later?
These people are left with two difficult choices:
1 - Eat the adjusting payments
2 - Lose the home to foreclosure
Horrible. Horrible. Horrible....
Sep 28, 2007
Housing Recovery! Housing Recovery?
“Fresh evidence suggests the Denver-area housing market may be in the early stages of recovery, even as the national housing market faces an even bigger slump.”
“Housing is a bargain in the Denver area compared with many other places,” states Mike Foster, director of land acquisitions for Century Communities.
“Denver is a low-risk market. It will be easier for companies to relocate to our market than to relocate to other markets,” continues Foster.
“Is it all roses in the Denver marketplace? No. But it is not as bad as all of the doom-and-gloom talk either,” affirms real estate agent Gary Bauer.
I’m not ready to stand here and guarantee that the Denver market will recover in the next 6 months. I’m not ready to promise double digit appreciation. There are too many houses on the market and the real estate finance industry is still finding itself. Basically, there are too many unknowns. However, the future doesn’t appear to be all doom and gloom. There is hope!
“Not long ago, Denver was the most expensive housing market ‘anywhere in the U.S. without a beach.’ But because the Denver-area housing market has been flat for so many years, it will recover faster than other areas that, until recently, saw a huge run-up in prices.”
-“Home Prices Hint at Turn.” Rocky Mountain News Business 2. 9/27/07
“Housing is a bargain in the Denver area compared with many other places,” states Mike Foster, director of land acquisitions for Century Communities.
“Denver is a low-risk market. It will be easier for companies to relocate to our market than to relocate to other markets,” continues Foster.
“Is it all roses in the Denver marketplace? No. But it is not as bad as all of the doom-and-gloom talk either,” affirms real estate agent Gary Bauer.
I’m not ready to stand here and guarantee that the Denver market will recover in the next 6 months. I’m not ready to promise double digit appreciation. There are too many houses on the market and the real estate finance industry is still finding itself. Basically, there are too many unknowns. However, the future doesn’t appear to be all doom and gloom. There is hope!
“Not long ago, Denver was the most expensive housing market ‘anywhere in the U.S. without a beach.’ But because the Denver-area housing market has been flat for so many years, it will recover faster than other areas that, until recently, saw a huge run-up in prices.”
-“Home Prices Hint at Turn.” Rocky Mountain News Business 2. 9/27/07
Sep 18, 2007
Time for a Recession?
“Detroit, Cleveland and some smaller Rust Belt cities are experiencing a traditional bust, in which economic woes spread to housing. In San Diego, the housing decline seems to be a self-generated phenomenon, the product of too-high prices and too-crazy lending practices.”
Basically, there are a lot of reasons that the housing industry is struggling. Economic woes obviously go hand in hand with housing woes. People without jobs are going to struggle to make their payments. No shocking revelations here….
The big question is “Will housing woes result in an economic recession?”
Housing prices have dropped 3.2% nationally during the past 12 months. Over 36,000 in the mortgage industry have dissipated over the course of the past year. “46% of new jobs between 2001 and 2006 in the US were credited to real estate, residential construction and other housing related Labor Department jobs.”
Managing director of the Economic Cycle Research Institute, Lakshman Achuthan, says, “Having a jobs report come in negative does not mean that a recession has started.” The risk, however, is there.
Time for some personal insight… I don’t believe a full blown recession is at hand. Inflation looks to be stable which could me a rate cut in the very near future. The federal government is becoming actively involved as government backed programs are loosening up a bit and providing relief for some distressed homeowners.
Bottom line: There are a lot of bad loans out there that are going to keep a large inventory on the market BUT builders are pulling out, government backed programs are expanding and Wall Street seems to be settling down a little bit. Not all subprime loans are destined for foreclosure. Most subprime borrowers do pay their mortgage and do know the terms of this mortgage. I’m proud to be one of them.
**Statistics and other information drawn from Time Magazine 9/24/07.
http://www.time.com/time/magazine/article/0,9171,1661682,00.html
Basically, there are a lot of reasons that the housing industry is struggling. Economic woes obviously go hand in hand with housing woes. People without jobs are going to struggle to make their payments. No shocking revelations here….
The big question is “Will housing woes result in an economic recession?”
Housing prices have dropped 3.2% nationally during the past 12 months. Over 36,000 in the mortgage industry have dissipated over the course of the past year. “46% of new jobs between 2001 and 2006 in the US were credited to real estate, residential construction and other housing related Labor Department jobs.”
Managing director of the Economic Cycle Research Institute, Lakshman Achuthan, says, “Having a jobs report come in negative does not mean that a recession has started.” The risk, however, is there.
Time for some personal insight… I don’t believe a full blown recession is at hand. Inflation looks to be stable which could me a rate cut in the very near future. The federal government is becoming actively involved as government backed programs are loosening up a bit and providing relief for some distressed homeowners.
Bottom line: There are a lot of bad loans out there that are going to keep a large inventory on the market BUT builders are pulling out, government backed programs are expanding and Wall Street seems to be settling down a little bit. Not all subprime loans are destined for foreclosure. Most subprime borrowers do pay their mortgage and do know the terms of this mortgage. I’m proud to be one of them.
**Statistics and other information drawn from Time Magazine 9/24/07.
http://www.time.com/time/magazine/article/0,9171,1661682,00.html
Aug 13, 2007
Who On Earth is Buying???
Some interesting facts (all statistics national):
- 36% of home buyers are 1st timers this year - down from 40% last year
- 22% of all buyers are single women - 9% are single men
- Homes are on the market for an average of 6 weeks
Some disheartening statistics (all statistics courtesy of Matt Hanna):
- My condo has been on the market for 5 weeks.
- It's still for sale!
Some statistics of hope (courtesy of real estate agents):
- My condo is priced right according to feedback from agents who have shown the property.
- 36% of home buyers are 1st timers this year - down from 40% last year
- 22% of all buyers are single women - 9% are single men
- Homes are on the market for an average of 6 weeks
Some disheartening statistics (all statistics courtesy of Matt Hanna):
- My condo has been on the market for 5 weeks.
- It's still for sale!
Some statistics of hope (courtesy of real estate agents):
- My condo is priced right according to feedback from agents who have shown the property.
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