Real Estate Foreclosure Sales

Real Estate Foreclosure Sales

February 13, 2008 0 Comments

(February 13, 2008) – Want to see some really ugly numbers? RealtyTrac released its foreclosure sales data by metropolitan area this morning. The findings, discussed in a story Forbes ran this morning called “Foreclosures Hurt Housing Market Further” are detailed below.

I put together the following chart using Associated Press data on the proportion of U.S. home sales in 2007 and 2006 that resulted from foreclosures, accessed here, so you can see what’s going on.

As I have been arguing, the black hole that the U.S. real estate market has fallen into is an asset market issue, not a GDP story. All the $600 checks in the world are not going to fix it–it has to be cured with asset market medicine. The GDP data that we use to define a recession don’t capture the pain of falling property values. It shows up on families’ balance sheets as illiquid assets and falling net worth. The bond market will come back to life only when fixed-income investors feel comfortable understanding and valuing future cash flow again. When that happens, as it always does, the property markets will stabilize too.

Meanwhile, if you are selling a house I hope you live in Vermont; if you are buying one I hope you are shopping in Nevada, like me.

JR

Sales%20Percentage%20Foreclosures.png

John Rutledge

0 Comments

  1. Melbourne FL Homes For Sale

    February 14, 2008

    That graph kinda says it all nothing like a graph to show the situation. It is as you said a great thing to see if you are planning to relocate and where the potential for a great deal is made.

    Sounds like Arizona is the best place to buy for sure. I lived there many years ago and can be a great place. Nice weather and mountain views. It would also be a great place to get a second home for a vacation home.

  2. Orlando Florida Real Estate

    February 15, 2008

    Yikes!! Am I the only one who rushed to there state first but noticed Arizona and just froze. What a tragedy for the people but oh my lots of homes will be for sale soon enough.

  3. Kevin

    February 21, 2008

    Are these percentage figures the percent of total home sales that were sales on foreclosed property? If so, perhaps some states are much better at moving foreclosed inventory than others are. Just a thought.


Would you like to share your thoughts?

Your email address will not be published. Required fields are marked *

Leave a Reply

Copyright © 2014 Rutledge Capital · All Rights Reserved