May foreclosure numbers from RealtyTrac: Nevada secures the No.1 spot at an unbelievably high percentage of foreclosure filings: One filing for every 166 households. Second place goes to Colorado: One filing for every 290 households. Third and fourth places go to California and Florida, who lead the nation by number of foreclosure filings (CA: 39,659 , FL: 21,704).
From Bloomberg: “U.S. foreclosure filings surged 90 percent in May from a year earlier as more homeowners fell behind on their monthly mortgage payments, RealtyTrac Inc. said.”
“There were 176,137 notices of default, scheduled auctions and bank repossessions last month, led by California, Florida and Ohio, the Irvine, California-based seller of foreclosure data said in a report today. The median price for a U.S. home slid 1.8 percent the first three months of 2007 as the housing slump entered its second year, according to the National Association of Realtors. The filings rose 19 percent from April.”
“A jump in foreclosures at a time of year that traditionally is the busiest for home sales means the slide in prices probably isn't over, said James Saccacio, chief executive officer of RealtyTrac. Typically, more than half of all home sales occur in the April to June period, according to Freddie Mac, the No. 2 mortgage buyer.”
“‘Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year,’ Saccacio said in the report. That will add ‘to the downward pressure on home prices in many areas.’”
Full article can be found here.
I'm amazed at how the National Association of Realtors managed to call a bottom in the housing market just a few short weeks ago, “...but according to Yun, foreclosures, ‘will be a rather minor impact in terms of sales and home pricing.’”
A related video from CNBC featuring First Trust Advisors Chief Economist Brian Wesbury calling bottom and Professor Nouriel Roubini in disagreement. “‘I think the worst is behind us,’ Wesbury said. However, RGEMonitor.com chairman Nouriel Roubini thinks the worst is actually ahead of us.”
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5 comments:
I'm amazed at how the National Association of Realtors...
The guy who said that is doing what he's paid to do -- spin the data as positively as possible. Some people have few scruples, which cannot be news to you.
All of this will surely get worse, to the point where people who otherwise could afford to pay will be walking away from their negative equity life traps, and as a non-owner/sucker it'll be some fun to watch (although I'm not totally unsympathetic, as not all victims will be flippers -- unfortunately the converse will also not be true).
But I'm also interested in trying to make money on it.
You're right, the adjective "comical" perhaps gives a better description on how the NAR can call a bottom in light of these striking foreclosure stats.
I have absolutely no sympathy for the flippers who are now in trouble, I do however think that the issue of predatory lending on those who lack financial knowledge and laid trust to the mortgage brokers is serious. There are numerous examples of people (especially the minority) who have clearly been taken advantage of.
I am sure the market will recover after the SuperBowl,i'm just not sure which one.
XLVII?
The worst is still ahead I believe. If you survived through the 1980 Saving and Loan Crisis, you know what I mean. It took 5 years for the Real Estate market to turn around.
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