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Seattle really is special: lower lending standards apply

snigletsniglet
edited October 2007 in Seattle Real Estate
Wow! It looks as if Seattle really is special. Washington is being exempted from some of the recent tightening lending standards. This only makes sense of course. While home prices may depreciate in other parts of the country, they only go up in Seattle, so who cares about offering 100% financing or negative amortization loans? Those prices will rise by 10% next year allowing everyone to refinance.

http://online.wsj.com/article_email/SB119309981819267828-lMyQjAxMDE3OTIzMjAyOTI5Wj.html

Comments

  • mike2mike2
    Given that these decisions are being made by people that were giving 100% LTV loans in Detroit up until a few months ago I'm not sure this means much going forward. From the included charts, some of the markets seeing substantial price declines this year were squeeky clean last year.

    Furthermore, the redlining issue really prevents banks from saving the saveable submarkets. It's no secret where I'm at that the absolutely staggering losses are concentrated in the Hispanic neighborhoods which make up 25% of the population.
  • georgegeorge
    Good point Mike.

    Look at it this way. Sure, Seattle is special in some ways, and most bubbles are local. Until now. This bubble is seeing the first national declines since the depression, and it's getting a lot worse before it gets better.

    More bad news here:

    http://blogs.wsj.com/economics/2007/10/ ... =fpa_blogs
    mike2 wrote:
    Given that these decisions are being made by people that were giving 100% LTV loans in Detroit up until a few months ago I'm not sure this means much going forward. From the included charts, some of the markets seeing substantial price declines this year were squeeky clean last year.
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