CNBC actually had a non-scary housing story last Friday!
Diana Olick noted that the data show that:
“A full third of those facing foreclosures are speculators who took risky bets and lost.” read: not homeowners who were duped into getting shady loans.
“it just shows how targeted this foreclosure problem is. It is not a nationwide issue.”
From the Mortgage Bankers Association:
These four states (California, Florida, Nevada and Arizona) have a disproportionately high share of investor loans, or loans to buyers who do not plan to live in the house.Â As of June 30, the non-owner occupied share of defaulted loans (90 days of more past due or in foreclosure) was 32 percent in Nevada, 25 percent in Florida, 26 percent in Arizona and 21 percent in California, compared with 13 percent in the rest of the nation.Â These investors are much more likely to default on their mortgages if they see the value of their investments falling due to falling home prices.
Foreclosures in the Charlottesville area seem to be holding steady (there are only four listed this week in the HooK). The Virginia Association of Housing Counselors is commendably holding a “Foreclosure Summit” on 25 September (pdf); when I asked whether they had any data showing whether they had any accurate data on the current numbers of foreclosures or any projections on what the rate will be in 6 to 12 months, the answer was “no.” I expect there is local data; it’s a matter of putting one’s hands on it.
A little bit of perspective is a healthy thing: since 1990, house prices in Virginia have risen 377% and since 2007 have risen 74%. The sky is not falling.
In the Charlottesville MSA (including Louisa), there are :
79 instances of “motivated” in the agent remarks, 48 in the public remarks
35 of “motivated seller” and 30 in the public remarks
4 of “foreclosure”
2 of “short sale” and 0 in the public remarks