US Housing Market Faggotry
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J.
Old Fart
Reign in Acai
Of Elephant and Man
NEW YORK (CNNMoney.com) -- The binge that many housing markets went on in the early- to mid-2000s is over, and some of the hottest markets like California are now experiencing the worst hangovers.
But other areas, especially many that recorded slower home price growth earlier this decade, have seen little increase in foreclosure rates, according to the latest data released Tuesday from RealtyTrac, the online marketer of foreclosure properties.
"While foreclosure activity has skyrocketed over the past year in many cities, particularly in California, Ohio and the Northeast," James Saccaccio, RealtyTrac's chief executive, said in a statement, "foreclosure activity seems to be subsiding in parts of Texas, South Carolina and other states."
"Still," he said, "the overall trend is toward escalating foreclosure rates, with 82 of the top 100 metro areas reporting year-over-year increases in the number of homes affected by foreclosure."
Stockton, California now leads the nation in foreclosures. Of RealtyTrac's top 10 metro areas for foreclosures, four are in Central California.
Coastal California cities are doing relatively well, although foreclosures are up there too. San Francisco had one foreclosure for every 263 households, a fairly low rate, but up 83 percent from the first six months of 2006.
Stockton city drew thousands of home buyers to the Central Valley area from the prohibitively expensive Bay-area markets during the housing boom and saw home prices nearly double in the four years ended December 31, 2005, according to the Office of Federal Housing Enterprise Oversight.
Because of California's outsized home prices, option and hybrid adjustable-rate mortgages (ARMs) interest-only loans became widespread. They enabled home buyers to get into properties they could not otherwise afford.
But often these loans were time bombs; hybrid ARMs, for example, reset to much higher rates - and payments - after the first two or three years of low fixed rates.
Many buyers were also approved for expensive mortgages based on applications in which income or assets went unproven, the so-called no- or low-doc loans, AKA "liar loans."
Lenders underwrote mortgages for these borrowers based on their income or asset claims without proof and many times the claims were exaggerated. When hard times hit, these borrowers had fewer resources to fall back on than the lenders anticipated and foreclosures followed.
Seven of the nation's top 10 metro areas are in the Sun Belt. Only three are in economically hard-hit areas, historically the kinds of places that once produced the highest rates of foreclosure filings.
Stockton recorded one foreclosure filing for every 27 households during the six months ended June 30, a 256 percent increase compared with the first six months of 2006.
Number two in the nation was Detroit, where job losses in the auto industry drove foreclosures higher. One of every 29 households recorded a foreclosure filing there, almost double the rate of a year ago. Las Vegas (one of 31, up 142 percent) was third.
The other California cities in the top 10 were Riverside/ San Bernardino (one in 33, up 198 percent), Sacramento (one in 36, up 231 percent) and Bakersfield (one in 47, up 222 percent). Rounding out the top 10 were Denver at No. 6, Miami at No. 7, Memphis at No. 9 and Cleveland ranked 10th.
The lowest foreclosure rate recorded by RealtyTrac among the 100 metro areas surveyed was in Richmond, Virginia. It had just one for every 2,319 households, about the same as a year ago and a rate barely more than 1 percent of Stockton's.
Other low foreclosure metro areas included Greenville, South Carolina (one in 1,721, down 66 percent), McAllen, Texas (one in 1,494, down 35 percent) and Honolulu (one in 1,151, up 68 percent).
But other areas, especially many that recorded slower home price growth earlier this decade, have seen little increase in foreclosure rates, according to the latest data released Tuesday from RealtyTrac, the online marketer of foreclosure properties.
"While foreclosure activity has skyrocketed over the past year in many cities, particularly in California, Ohio and the Northeast," James Saccaccio, RealtyTrac's chief executive, said in a statement, "foreclosure activity seems to be subsiding in parts of Texas, South Carolina and other states."
"Still," he said, "the overall trend is toward escalating foreclosure rates, with 82 of the top 100 metro areas reporting year-over-year increases in the number of homes affected by foreclosure."
Stockton, California now leads the nation in foreclosures. Of RealtyTrac's top 10 metro areas for foreclosures, four are in Central California.
Coastal California cities are doing relatively well, although foreclosures are up there too. San Francisco had one foreclosure for every 263 households, a fairly low rate, but up 83 percent from the first six months of 2006.
Stockton city drew thousands of home buyers to the Central Valley area from the prohibitively expensive Bay-area markets during the housing boom and saw home prices nearly double in the four years ended December 31, 2005, according to the Office of Federal Housing Enterprise Oversight.
Because of California's outsized home prices, option and hybrid adjustable-rate mortgages (ARMs) interest-only loans became widespread. They enabled home buyers to get into properties they could not otherwise afford.
But often these loans were time bombs; hybrid ARMs, for example, reset to much higher rates - and payments - after the first two or three years of low fixed rates.
Many buyers were also approved for expensive mortgages based on applications in which income or assets went unproven, the so-called no- or low-doc loans, AKA "liar loans."
Lenders underwrote mortgages for these borrowers based on their income or asset claims without proof and many times the claims were exaggerated. When hard times hit, these borrowers had fewer resources to fall back on than the lenders anticipated and foreclosures followed.
Seven of the nation's top 10 metro areas are in the Sun Belt. Only three are in economically hard-hit areas, historically the kinds of places that once produced the highest rates of foreclosure filings.
Stockton recorded one foreclosure filing for every 27 households during the six months ended June 30, a 256 percent increase compared with the first six months of 2006.
Number two in the nation was Detroit, where job losses in the auto industry drove foreclosures higher. One of every 29 households recorded a foreclosure filing there, almost double the rate of a year ago. Las Vegas (one of 31, up 142 percent) was third.
The other California cities in the top 10 were Riverside/ San Bernardino (one in 33, up 198 percent), Sacramento (one in 36, up 231 percent) and Bakersfield (one in 47, up 222 percent). Rounding out the top 10 were Denver at No. 6, Miami at No. 7, Memphis at No. 9 and Cleveland ranked 10th.
The lowest foreclosure rate recorded by RealtyTrac among the 100 metro areas surveyed was in Richmond, Virginia. It had just one for every 2,319 households, about the same as a year ago and a rate barely more than 1 percent of Stockton's.
Other low foreclosure metro areas included Greenville, South Carolina (one in 1,721, down 66 percent), McAllen, Texas (one in 1,494, down 35 percent) and Honolulu (one in 1,151, up 68 percent).
dorian gray
Returning videotapes
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Ali, don't worry about it dude. 6.5% is a great rate. Just remember you were NOT going to stay at 4.6% the rest of the life of your loan.
Also, duders, don't be so afraid of buying a house, just don't do it in a foolish market. Sure, there are better investments than real estate but you gotta have a place to live and there are few things more gratifying than home ownership.
Also, duders, don't be so afraid of buying a house, just don't do it in a foolish market. Sure, there are better investments than real estate but you gotta have a place to live and there are few things more gratifying than home ownership.
J.
Old Fart
dorian gray
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Example: my wife's mom is 50. She's never married and never owned a house because she can't make the commitment and is too high-energy (always changing jobs and traveling, etc.). In her lifetime, she's spent hundreds of thousands of dollars on rent and has absolutely nothing to show for it. She makes nearly 6 figures a year but can't afford a nice house in this city because she never built up equity in anything. She's literally stuck renting a total shithole (her words) for probably the rest of her life. If she woulda bought a house when she was 30, it'd be almost paid off by now, and wouldve appreciated so much, she could probably buy the big house and acreage she wants.
Just saying.
Just saying.
Necromunchkin
Lord of the Whisky
And in ten years, be dead and it wouldn't mean a fucking thing. Except, ya know, to whomever was in her good graces, and more imporantly, in her will.
For now, I prefer renting. When houses get back down to the sensible levels of pre-2001 days, I'll look to buy. Not a moment before then.
I'm guessing in 2009 probably. Hopefully not in SoCal. Christ.
I'm guessing in 2009 probably. Hopefully not in SoCal. Christ.
dorian gray
Returning videotapes
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the only thing i regret doing was not taking an apartment at sticker back in November. They were asking 165K for it and knowing the market and area I knew it was worth about 210K ... brand new place ... mint.
I had to make a decision in less than 24hrs and needed to talk to my accountant ... offered them 160K to hold it (which under normal circumstances was a great offer) but lost it. kicking myself.
I had to make a decision in less than 24hrs and needed to talk to my accountant ... offered them 160K to hold it (which under normal circumstances was a great offer) but lost it. kicking myself.
this article is great ...
http://www.nytimes.com/2007/09/23/b...em&ex=1190865600&en=df9739895fbc0d81&ei=5087
the market really sucks now ... even in NY ... shit, a real estate company called me today that I dealt with last year ... not to sell me a house, but to work on a website for them as they don't know what else to do to promote themselves. same story happened last week with a real estate lawyer that I visited last year and he was packed with people closing on homes ... last week ... ghost town.
http://www.nytimes.com/2007/09/23/b...em&ex=1190865600&en=df9739895fbc0d81&ei=5087
the market really sucks now ... even in NY ... shit, a real estate company called me today that I dealt with last year ... not to sell me a house, but to work on a website for them as they don't know what else to do to promote themselves. same story happened last week with a real estate lawyer that I visited last year and he was packed with people closing on homes ... last week ... ghost town.
JayKeeley
Be still, O wand'rer!
OK so as mentioned earlier, I locked in a new mortgage at 6.5% with my own bank for 30 years. We closed last night (on-line using WebEx I might add) with an attorney. Going through the forms, we notice our escrow is WAY LOWER than what we pay currently. Turns out they calculated our tax wrong. Although our mortgage amount was going up together with a higher interest rate, our monthly payments went DOWN.
We knew this was a screw up.
So today, the bank have had to re-open the mortgage lock and we have to go through closing again on Monday. The result? Today's rate is 6.25%.
I love it when multi-billion $ bank conglomerates screw up their paperwork.
We knew this was a screw up.
So today, the bank have had to re-open the mortgage lock and we have to go through closing again on Monday. The result? Today's rate is 6.25%.
I love it when multi-billion $ bank conglomerates screw up their paperwork.
JayKeeley
Be still, O wand'rer!
Yeah, just in time for the Carcass and At the Gates reunion.
But seriously, the worse the economy, the better the metal!
dorian gray
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haha good story JayKeeley!
LOL @ Adrian: what are you talking about? Maybe it's because you live in one of the most inflated places on the planet. Not much has changed here. Housing is still expensive (for what you get) and the demand is seemingly endless. I have $100,000 cash to put down on a house (not that I would) and I still can't find anything that's as nice as the place I've sold. Sucks, really.
LOL @ Adrian: what are you talking about? Maybe it's because you live in one of the most inflated places on the planet. Not much has changed here. Housing is still expensive (for what you get) and the demand is seemingly endless. I have $100,000 cash to put down on a house (not that I would) and I still can't find anything that's as nice as the place I've sold. Sucks, really.
Dude demand is at |0| in the superbubble markets right now, but sellers are too ignant to lower their pricing because "well, my shitbox appraised for $500k last year, therefore it must be worth at least $1.2B by now" and then wonder why their shit stagnantifies on the market for 8 months and counting. Yeah, I make up words, what.
So are you doing the smart thing and renting for the next 6 months? Because if so I'll likely blow you (more than usual).
So are you doing the smart thing and renting for the next 6 months? Because if so I'll likely blow you (more than usual).
so I was reading the latest Forbes ... the one with the top billionaires and they have the usual q&a with some ...
one of the questions was ... "where would you invest money in the next decade?" ... and everything points to Energy Saving and Environmental co's ... but one rich dude said "I would invest in the Canadian housing market, as with global warming it will soon be an ideal country to live"
hmmm ...
one of the questions was ... "where would you invest money in the next decade?" ... and everything points to Energy Saving and Environmental co's ... but one rich dude said "I would invest in the Canadian housing market, as with global warming it will soon be an ideal country to live"
hmmm ...
I've been reading lately that Vancouver has one of the biggest bubble markets waiting to burst next, I don't know about the rest of Canada though. Apparently the UK and parts of Australia are set to bork soon as well. Hooray global meltdown, CITICRANK TO THE RESCUE!!!
http://seekingalpha.com/article/49972-siv-bailout-plan-don-t-ask-don-t-sell
A few years ago I considered buying property in Canadar, pay it off over 10 years, and then move there mortgage free.
Not the wisest investment for me these days. :Smug:
http://seekingalpha.com/article/49972-siv-bailout-plan-don-t-ask-don-t-sell
A few years ago I considered buying property in Canadar, pay it off over 10 years, and then move there mortgage free.
Not the wisest investment for me these days. :Smug:
Reign in Acai
Of Elephant and Man
I highly doubt Canada is going to turn in to a tropical paradise any time soon. These champions of global warming concentrate all their efforts in to this one topic which can easily be shrugged off by naysayers as a climatic cycle. They need to just flat out say, "look around, the environment is turning to utter shit." There's no turning back, we've made our beds now lets lie in them. 80% of the world is occupied picking gnats out of their gums and worrying whether the U.N is going to drop their bi-monthly ration of corn meal on their mud hut ladened village. One person can not stop a Tsunami, so enjoy that mojito, and bask in the melt down.
