Home Values in Freefall: The Bright Side of the Housing Collapse….
February 22nd, 2010 | by admin |
The Bright Side of the Housing Collapse….You can buy a home for as little as $40 (with payments as low as $0.19 per month!!! if financed)
One in five U.S. mortgage borrowers are underwater
NEW YORK (Reuters) One in five U.S. homeowners with mortgages owe more to their lenders than their properties are worth, and the rate will increase as housing values drop in states that have so far avoided the worst of the crisis, a new study shows.
About 8.31 million properties had negative equity at the end of 2008, up 9 percent from 7.63 million at the end of September, according to the study, released Wednesday by First American CoreLogic. The percentage of “underwater” borrowers rose to 20 percent from 18 percent.
Another 2.16 million properties could go underwater if home prices fall another 5 percent, the study shows.
First American said the value of residential properties fell to $19.1 trillion at year-end from $21.5 trillion a year earlier, with half the decline in California. Forty-three U.S. states and Washington, D.C., were included in the study.
While states such as California, Florida and Nevada were particularly stressed, the study showed worrying signs of deterioration in relatively healthy parts of the nation.
“The economic slowdown is broadening,” said Sherrill Shaffer, a banking professor at the University of Wyoming at Laramie and a former Federal Reserve official. “As more people lose jobs, it will be more difficult to sustain the levels of pricing and home ownership, and that is a big factor driving down housing prices in more parts of the country.”
Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio remained the most stressed states, with 62 percent of underwater borrowers and just 41 percent of mortgages.
Other areas, though, also face more stress. Connecticut, for example, saw a 25 percent increase in homes with negative equity, while Washington, D.C., had a 44 percent increase.
“Even I continue to be surprised at the tentacles of this financial and economic debacle,” said Robert MacIntosh, chief economist at Eaton Vance Management in Boston. “More people are being laid off, resulting in reduced income and therefore less consumption. That leaves fewer people with money to buy homes, and the mentality is that people believe they should wait six months rather than buy now. Less demand means falling prices.”
Roughly 68 percent of U.S. adults own their own homes, and about two-thirds of these have mortgages. Many economists expect the nation’s unemployment rate to rise above 9 percent before the recession ends, up from January’s 7.6 percent.
CALIFORNIA, NEVADA UNDER STRESS
California had 1.9 million borrowers with negative equity at year-end, more than any other state, followed by Florida’s 1.28 million. About three in 10 borrowers in both states were underwater.
By other measures, Nevada was the most stressed, with 55 percent of owners having negative equity and borrowers on average owing 97 percent of what their homes are worth. About 28 percent owe more than 125 percent of their homes’ value.
Michigan had 40 percent of its homeowners underwater, while Arizona had 32 percent.
New York fared best, with just 4.7 percent of borrowers with negative equity and an average 48 percent loan-to-value ratio, though this could change as employment and bonuses slide in the financial services industry.
According to the S&P/Case-Shiller Home Price Indices, prices of U.S. single-family homes slumped 18.5 percent in December from a year earlier, the biggest drop in the 21-year history of the data.
Many lenders are taking steps to keep borrowers out of foreclosure. The Obama administration has backed legislation that could broaden powers of bankruptcy judges to modify mortgages for troubled borrowers. Among major lenders, only Citigroup Inc has supported such a plan.
MacIntosh expects housing prices to keep falling until “well into” 2010. “There is no magic bullet or magic arrow here,” he said. “It is a question of trying to come up with ideas and seeing what happens. It could take a long time.”
First American CoreLogic is an affiliate of title insurance and real estate services company First American Corp.
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25 Responses to “Home Values in Freefall: The Bright Side of the Housing Collapse….”
By theredpillxxx on Feb 22, 2010 | Reply
these are sold for …
these are sold for taxes.
if you buy a property for delinquent taxes the previous owner has 3 years to buy it back for what you paid plus interest . they almost always do so, unless of course it is in detroit.
By saynotodarwin on Feb 22, 2010 | Reply
yeh but in da …
yeh but in da ghetto where people tear up the neighborhoods, who’s to say they won’t tear your house up, and what will it be worth with these bozos tearing up everything in sight?
By missyouhoo on Feb 22, 2010 | Reply
I live in detroit …
I live in detroit near the boston-edison district they r very real the house i wanna buy is only 7800 and its 1700 sq ft? where do u live?
By mkmason2002 on Feb 22, 2010 | Reply
Yeah they forgotten …
Yeah they forgotten to tell you about the back taxes owed on these properties.
I wouldn’t live in Detroit if you paid me a million bucks.
By Joshforeclosureblank on Feb 22, 2010 | Reply
You are right… …
You are right…they are basically free
By gregorioholm on Feb 22, 2010 | Reply
these are real …
these are real prices look them up on the Wayne County Land Bank
By FrankinHolland on Feb 22, 2010 | Reply
There are certainly …
There are certainly back taxes. For being a complete 3rd world shithole Detroit is still an expensive place to live.
By saynotodarwin on Feb 22, 2010 | Reply
Detro8t is Motown …
Detro8t is Motown with Stevie Wonder, Supremes, Michael Jackson, Joe Jackson. Michael is dead, so homes are worthless.
By chingon711 on Feb 22, 2010 | Reply
Look it up for …
Look it up for yourself.
By saynotodarwin on Feb 22, 2010 | Reply
these are fake …
these are fake prices no one can be that stupid to believe you
By ZzzINSIGHTzzZ on Feb 22, 2010 | Reply
gotve GOOD FOR YOU …
gotve GOOD FOR YOU… Notice Samson, how he talks. He’s from the antion of islam in the USA they read the black code book and talk all against whitey. I swear if the guy broke his wrist tommorrow he would say if it wern’t for the whitey this wouldn’t have happened. This city is like a lot of others but Detroit is Crime ganged, drugs BIG TIME! A lot of my black friends left that area because of the crime not the housing market.
By ZzzINSIGHTzzZ on Feb 22, 2010 | Reply
SAMSON This is no …
SAMSON This is no time to start with the jokes against thelight skinned ppl of the world. There are plenty of black who do enough destruction without any help from whitey
By ZzzINSIGHTzzZ on Feb 22, 2010 | Reply
They always start …
They always start the bidding that low. I have never seen it actually sell at those prices. Many of these homes owe back taxes that the buyer has to take on. Still the Realtors are trying to get the US home owners who do want to sell to sell at an obscene low price. The realtor want his comminsion fast!
By kristianVenlo on Feb 22, 2010 | Reply
its the monthly rent
its the monthly rent
By sirsporks on Feb 22, 2010 | Reply
Nice homes too. …
Nice homes too. Goddamn.
People should jump at this and if they do and in numbers, the rest of the houses would go down if these got so low they got in demand.
By gotveggieoil on Feb 22, 2010 | Reply
Total fake and lies …
Total fake and lies…I just entered all of the MLS number tht are on the slides for each house, and NONE are for sale for the prices shown. That is a rental price per month!
STUPIDITY!
By SAMSON12321 on Feb 22, 2010 | Reply
YEAHas long as you …
YEAHas long as you are aware that the gangs and mafia are the same corrupt whites that are behind the destruction of not only Detroit, but also the stock market, the american government, the banking system, manufacturing in america etc etc…
By SAMSON12321 on Feb 22, 2010 | Reply
YOU’RE AN IDIOT!!!! …
YOU’RE AN IDIOT!!!!!…Detroit is a reflection of what is happening all around america. Whites are the biggest victims losing homes, jobs, investments, pensions and all…and despite that are still trying to make racial jokes adn comments?!?!?. Whites are robbing and kiling not only one another, but their own families, vandalizing each others properties and living in tent cities…best to keep your jokes for your own who will soon fill the soup lines and shelters..Oops you already have
By SAMSON12321 on Feb 22, 2010 | Reply
Call 1 800 JACKASS. …
Call 1 800 JACKASS… Those properties are in a city that is DEVESSTATED by the failed auto industry. Those were once family homes worth quit a bit of money. Families were foreclosed on after the auto plants closed and tens of thousands laid off. All of Detroit looks like that…even the once rich areas…SHAMEFUL:
By Iambusy3 on Feb 22, 2010 | Reply
Yes, there are a …
Yes, there are a lot of cheap houses in Detroit but if you read the fine print you’ll find that many of thoses are offered for rent not sale….
By bigdeneen on Feb 22, 2010 | Reply
if you make 20 a …
if you make 20 a year ….ha ha
By AntiPretendian on Feb 22, 2010 | Reply
Hmmm…I dunno. …
Hmmm…I dunno. Thats a spooky thought though.
By paulsviplist on Feb 22, 2010 | Reply
Do you think that …
Do you think that the local state government in Detroit is run by the gangs and mafia too.
By AntiPretendian on Feb 22, 2010 | Reply
Its in Detroit, it …
Its in Detroit, it dont matter if youre black you prolly have to be a gang member to live on that street (the right type of gang member, or else you’ll get shot!).
By paulsviplist on Feb 22, 2010 | Reply
I want a $50.00 …
I want a $50.00 house.
What number do I call?