Forclosure Updates

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mino2126_IHB

New member
Had not seen anyone post this yet so I thought I would. Here are some highlights:





<em><strong>"California, the largest state, reported foreclosure activity increasing by 30% from the previous month and more than 350% from May 2006, which boosted the state's foreclosure rate to the third highest in the country."





"The cities with the nation's top three metropolitan foreclosure rates were all located in California, and three other California cities also documented foreclosure rates among


the top 10.</strong></em>

<p class="textBodyBlack"><strong><em>A 49% increase in foreclosure activity ensured that Stockton, Cali., would register the nation's highest metropolitan foreclosure rate at one filing for every 88 households, which was nearly 7.5 times the national a average."</em></strong></p>

<p class="textBodyBlack"><strong><em>Merced, Cali., documented the second highest metro foreclosure rate, one foreclosure filing for every 100 households, followed by Modesto, Cali., with one foreclosure filing for every 118 households. Other California metros in the top 10 were Riverside-San Bernardino at No. 5,


Vallejo-Fairfield at No. 6, and Sacramento at No. 7."</em></strong>


</p>




Anyone have any suggestions as to why the higher foreclosure rates are more heavily concentrated in the North vs the South?
 
<p>It's not really North vs South, it's the amount of development they've had in exurbs with few land constraints. The ability to overshoot supply gets magnified greatly when there is almost no shortage of available land. I suspect the size of those markets is significantly larger than the SoCal areas similarly lacking contraints (epitomized here by the high and low desert regions).</p>

<p>SCHB</p>
 
If that be the case then shouldn't we see a larger decrease in price as more supply should be on the market? Not sure if we have seen that yet, have we?
 
<p>SCHB, you are spot on regarding the desert. I've been following the Palm Springs area closely for about 6 months now. It's tanking out there. 100K price reductions on the higher end properties are becoming the norm </p>

<p>I suppose a lot of this has to due with it being primarily a 2nd home / investment area...and people are dumping their weekend properties / investments due to the resets. Nothing is selling though ! And they're a rapidly depreciating asset, who wants to hold onto that ?! </p>
 
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