Saturday, February 17, 2007
Foreclosures jump 35% - Can this be true?
- First of all the 35% increase is across the nation and compares to the last December. Now think about this for just a minute. Last December was still a fantastic record year for Real Estate. So a 35% increase in foreclosures is compared with a year that was one of the best years on record for all real estate transactions and foreclosures will at an all time low last year.
- The number of foreclosures top 109,000 for the month of December. Now what is conveniently left off is how many transactions went through that month. Percentages don't always tell the entire story. In fact the December number of 109,000 was a 9% decrease but that doesn't make headlines now does it.
- The foreclosure data being quoted includes all states of foreclosure. Defaults are included in this number. A default can occur as soon as a person is 1 day late on their mortgage. More than like the number is after someone is 30 days late. They do not state this nor are the numbers separated out. People can run into tough times and bring themselves current from missing 1, 2, or even 3 payments. This number is not included in their statistics.
The median value of homes finished up in 2006 once again. It is true that there are going to be foreclosures but that can happen in any market. The areas of the country like Detroit that are experiencing massive layoffs from the auto industry are going to cause foreclosures. We challenge you to look beyond percentages and study why the numbers are occuring. Foreclosures are a sign that people need help and we should make sure to find out why they need help before jumping to conclusions about the value of real estate.
As usual, you decide the truth!
You be the judge of the real estate market!
Labels: bank owned, buyers market, foreclosure, home prices, House market, house values, Housing Market, loans, median home value, mortgage rates, Real Estate Fall, real estate market, real estate prices, reo
