CNNMoney has the latest on top foreclosure rates for metro areas across the U.S. The data was released Tuesday by RealtyTrac.
The Washington/Arlington/Alexandria DC-VA-MD metro area came in #66 out of the top 100 metro areas for rates of foreclosure. In this region there were 8,483 foreclosure filings in the first half of the year, 1 filing for every 195 households, and the rate of increase was 430% from the first half of 2006.
The Bethesda/Frederick/Gaithersburg MD region had 1,196 foreclosure filings, 1 for every 368 households, and the rate was up 581% from the first half of 2006.
Tuesday, August 14, 2007
Latest Foreclosure Data
Posted by Harriet at 4:03 PM
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14 comments:
Harriet,
Yes the foreclosure is increasing day by day. I expect it will take long time to stablish this real market.
"and the rate of increase was 430% from the first half of 2006"
And who would be surprised that the rate would have increased compared to a period when prices were still rising and a re-sale was no problem? Ever hear the expression "A solution in search of a problem ... ?"
"And who would be surprised that the rate would have increased compared to a period when prices were still rising and a re-sale was no problem?"
Who said they were surprised?
"Ever hear the expression "A solution in search of a problem ... ?"""
Who said this was a solution to something?
This is absolutely no surprise. It is very sad, but very, very predictable. Cheap money, costs escalating exponentially, and greed = real estate disaster.
Here is a great article written by
Joseph E. Stiglitz, a Nobel laureate in economics, is Professor of Economics at Columbia University and was Chairman of the Council of Economic Advisers to President Clinton and Chief Economist and Senior Vice President at the World Bank: http://www.project-syndicate.org/commentary/stiglitz90
This guy is far smarter than me. His opinion is respected as much as Shiller's. And we know what Shiller believes.
"The housing bubble induced Americans to live beyond their means – net savings has been negative for the past couple of years. With this engine of growth turned off, it is hard to see how the American economy will not suffer from a slowdown. A return to fiscal sanity will be good in the long run, but it will reduce aggregate demand in the short run."
The piper will be paid. And decent people who wanted homes will suffer because of the greed of others and poor buying decisions. Some continue to live in delusion. Admitting poor judgement is difficult. Financial ruin often follows.
Leroy,
The point is that foreclosures during the boom period were far below NORMAL rates. With the boom over, we're now returning to normal rates. Hence the 400% increase. It's not hard to have an increase of 400% when you are starting from close to zero. From what I've read, foreclosure rates are still on the low side from a historical perspective. I.e., the bubbleheads' hope of prices precipitously dropping are a "solution" in search of a problem.
lance,
You are playing with words here--when foreclosures rise by 400% suddenly, that is evidence of a 'bubble' not a 'boom'.
A few friends of mine who bought during 2004-2005 used to have a swagger whenever we met. Talk would invariably turn to real estate. Now they are quiet about real estate--the swagger is gone and I see grim faces. So keep entertaining us during the short time your swagger is left.
"With the boom over, we're now returning to normal rates. Hence the 400% increase."
What are the "normal rates" in Northern Virginia lance?
Besides, even though it is true that foreclosures were very low over the last few years, it is still noteworthy that they have climbed 4x in such a short time period.
Leroy,
4 times almost nothing is still low no matter how you parse it.
Tedk,
"Swagger"? Ah, there comes that envy/regret attitude again! Envy is not a pretty thing.
"4 times almost nothing is still low no matter how you parse it."
So what is the "normal rate" you say we are returning to?
Are we near it?
Have we passed it?
When will/did we reach the "normal rate" if foreclosures continue to climb at this rate?
You have a theory lance, now lets see some data to back it up. As usual I suspect you have none, but go ahead and surprise me...
Show us some historical foreclosure data for Northern VA since you obviously must have it to make the assertion that we are returning to the "normal rate."
(otherwise you would be just guessing... and we know you wouldn't do that)
Lance,
While you're out there getting that historical data on VA Foreclosures, could you tell us how much that 100% year-over-year gain on that rowhouse in 20009 worked out? Did they sell for $2M?
Wow, now each and everybody is showing how much smarter they are than Lance. It's really obvious that everybody here besides Lance is pretty smart, but that Lance isn't.
Enough bickering. I got it already. Lance thinks prices won't drop much, other posters think they will (disclosure: I agree with the majority). None the less, it is painfull to have to wade through the same reasserted opinions and snide comments in order to occasioanlly find the occasioanl posts of exceptional quality such as the one from KCWood on this string. Thanks KC. Please keep posting.
I agree. This isn't the Bubblemeter blog. Please go back there, if you want to bicker all day.
Leroy -
Note sure about NoVa specifically, but here's a quote from an article in the Richmond Times Dispatch about Virginia in general:
"Nationally, foreclosures were up 87 percent from a year ago -- or one foreclosure for every 704 households.
Virginia did better, with one foreclosure for every 1,678 households. A year ago, few people here faced foreclosure: One foreclosure was filed for every 12,549"
So we went from 1 in every 12,500 to 1 in 1600 in about a year.
The article is from July 13.
http://www.inrich.com/cva/ric/search.apx.-content-articles-RTD-2007-07-13-0072.html
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