From RealtyTrac:
More Than 430,000 Foreclosure Filings Reported in Q1
RealtyTrac(TM), the leading online marketplace for foreclosure properties, today released first-quarter data from its 2007 U.S. Foreclosure Market Report, showing more than 430,000 foreclosure filings — default notices, auction sale notices and bank repossessions — reported nationwide during the first three months of the year, up 27 percent from the previous quarter and up 35 percent from the first quarter of 2006. The nation’s quarterly foreclosure rate of one foreclosure filing for every 264 households was the highest quarterly foreclosure rate since RealtyTrac began issuing its report 27 months ago.
“The rise in foreclosure activity was quite dramatic and widespread in the first quarter, with 37 out of the 50 states reporting year-over-year increases,” said James J. Saccacio, chief executive officer of RealtyTrac. “Certainly the surge in subprime defaults has contributed to the overall rise in foreclosures; we estimate that more than 50 percent of the foreclosure activity we charted in the first quarter was from subprime loans. However, it’s not just low-end homes that are going into foreclosure; we’re seeing a rising percentage of foreclosures with an estimated market value of more than $750,000.”
A total of 437,498 foreclosure filings were reported in the first quarter of 2007 up from 345,554 in the fourth quarter of 2006 and up from 323,101 in the first quarter of 2006.
U.S. Foreclosure Market Report – Q1 2007
1 for %Change %Change
Rate every from Q4 from Q1
Rank State Name #HH 2006 2006
— United States 264 26.61 35.41
1 Nevada 75 65.72 128.59
2 Colorado 111 5.98 23.88
3 Georgia 138 9.73 -8.31
4 Michigan 143 32.66 29.57
5 California 152 68.01 172.86
6 Florida 162 55.20 52.37
7 Arizona 186 41.12 88.66
8 Ohio 198 5.84 5.88
9 Texas 202 6.07 -0.91
10 New Jersey 209 14.24 51.56
Foreclosure Activity for the Nation’s 100 Largest MSAs – Q1 2007
Rate 1/every /Ntl
Rank MSA #HH Avg
1 DETROIT/LIVONIA/DEARBORN 51 5.231
2 LAS VEGAS/PARADISE 57 4.624
3 RIVERSIDE/SAN BERNARDINO 68 3.899
…
19 EDISON, NJ 143 1.854
…
25 CAMDEN, NJ 154 1.717
…
55 NEWARK, NJ 273 0.969
omg — 51%? ouch.
This should help newcomers understand the metropolitan divisions:
http://en.wikipedia.org/wiki/Metropolitan_Statistical_Areas_of_New_Jersey
1. Interest rates are rising and likely to rise further. The Fed has increased rates a bunch of times, and further hikes are likely. Most consumers that were in a panic to buy before rates went higher, have already bought.
2. Those interest-only and ARM mortgages are now resetting. Payments for millions of homeowners are shooting upward due to exotic mortgages coming due. Some bubble markets have been upheld by such exotic mortgages over the past few years with use of “creative financing” accounting for up to 75% of loans in recent years, in many areas. In 2007 America will see over 1 trillion dollars worth of adjustable loans reset. Many believe that in late 2007, we will see the largest and fastest home price crash of ALL-TIME!
3. Rents haven’t kept up with house prices or mortgage payments. New landlords cannot charge enough rent to cover costs of owning a bubble home due to higher taxes, insurance, and interest payments. Increasingly, people are better off renting than buying. It all adds up to less demand.
4. The investors are running for the exits Investors and flippers are now seeing negative returns and many markets!. Hundreds of markets are seeing prices fall. Its hard to make money flipping houses when prices are dropping.
5. Inventory is rising with a fury. Too many sellers chasing too few buyers means falling prices. Investors are starting to panic while holding costs and higher taxes are taking a toll on many homeowners. Inventories in most major metropolitan have begun to race upwards and some areas are now sitting atop all-time high inventories of homes for sale!
6. House prices have outpaced median incomes. Since people ultimately finance their homes out of their income, there has to be a reasonably stable long run relationship between incomes and house prices. The ratio of house prices to median incomes currently is at historically unprecedented levels.
7. When the economy sinks, home prices sink. Construction, furniture, and other home dependant industries will start laying-off workers now that the housing market is starting to drop. It has been estimated that 30% – 40% of all jobs created in the past few years have been housing related. The slowing and lay-offs will have a snowball effect on housing and the economy to push it over the edge!
8. Home values have started to drop all across the country. It’s difficult to keep up with all of the news about falling home prices. Literally hundreds of markets are seeing price declines now. When the general public finally realizes that home values are falling, all sane buyers will be scared away and then the crash will really begin!
9. The Public is becoming aware of the Real Estate Bubble Crash to come. Bubble blogs and news pages like http://www.homepricebubble.com are waking people up and cutting through the realtor hype and controlled media propaganda!! This awareness should alert more people not to mortgage their futures away because some realtor says it’s a good time to buy (and a good time to make commissions off of your indebt-ness!!)
10. Foreclosure are on the rise.
When home values begin to stall and fall people can no longer borrow against the equity in their homes. Owning an expensive home also increases other costs such as insurance, property taxes, and more. When homes can no longer be used as ATM machines, foreclosures start to increase. Foreclosures are increasing in most areas now and in some areas they are doubling and tripling from last year!
Check out all three parts – here’s part one…And compare Dr. Thornberg, a real economist, to the laughable Corrupt David Lereah
http://housingpanic.blogspot.com/2007/04/hp-favorite-thornberg-lecture-on-late.html
next part
http://www.youtube.com/watch?v=ILW8OolM0Lo&mode=related&search=