Here’s some interesting news. Apparently even double-digit appreciation isn’t enough to keep foreclosures from rising around here, much like they are across the country:
Following a national trend, Washington state’s mortgage foreclosures increased significantly last year, claiming 18,527 homes.In the Seattle/Bellevue/Everett area, one in every 136 homeowners was displaced by foreclosure, as was one in every 75 Tacoma owners.
Still, the state and the Seattle area faired better than the nation as a whole, according to RealtyTrac, a California-based foreclosure-information provider. It released its 2006 annual report late last week.
Washington state foreclosures grew 25 percent last year compared with a year earlier — far below the national increase of 42 percent.
Phew! Thankfully we’re safe because we’re “far below the national increase.”
However, since Ms. Rhodes mentioned that we are “following a national trend,” and given the assumption that the Seattle housing market lags most of the nation by six months to a year, I wonder how much foreclosures increased nationally in 2005?
Let’s see… Ah, here we go:
January 23, 2006 – RealtyTrac™ … today released year-end data from its 2005 U.S. Foreclosure Market Report, which showed that 846,982 properties nationwide entered some stage of foreclosure in 2005, and a 25 percent increase in the number of new foreclosures from the first quarter to the fourth quarter.
Hmm, interesting.
(Elizabeth Rhodes, Seattle Times, 01.27.2007)
If 1/136 or 1/75 homeowners were displaced by forclosure IN THE GREATEST TIME IN PNW REAL ESTATE HISTORY, what is it going to be like when properties are stagnant in price? What if they drift down by 10-15% per year?
With the kind of price inflation we have experienced, nobody should be displaced by forclosure – NOBODY! Of course, if you have 0% down, then why would you make your payment? It will be these people in the massive sub-prime market that will default first. This is going to be exacerbated by credit standards tightening (from no standards whatsoever) for the subprime market – these peoples’ potential buyers.
Like I said Thursday, the housing market is a real-world IQ test. Who is buying in this market? Who still thinks they are on their way to be a Trump jr.?
Who still thinks they are on their way to be a Trump jr.?
Ummmm . . . I know I know!
Casey Serin
;< )
Three bears have assured me that this will spill over into the rest of the economy. Their breath smelled like goldilocks.
Maybe it’s time to trot out this pony…..
When Should You Buy Foreclosed Properties?
NPR’s “Weekday” program is doing a piece on home foreclosures in WA state right now (Wednesday, Aug. 8 at 9 AM). FM 94.9