Sunday, February 24, 2008

California in January: More homes foreclosed that sold

Holy crap!

Some shocking statistical trends from Dataquick:

December 2007

Homes Sold: 25,585

Homes Foreclosed: 12,783

January 2008:

Homes Sold: 19,145

Homes Foreclosed: 19,821

Perhaps most horrifying is the fact that the 19,821 foreclosures in January represented some $8 billion in mortgage loans in the state! Nevermind the credit status of the borrowers, how in the heck will the banks and mortgage lenders ever get that money back?

Chris Thornberg of Beacon Economics research and consulting firm:

"There's no way a market that slow can clear these kinds of foreclosures," "What that number says to me is you have more homes getting dumped on the market in terms of foreclosures than there is demand for homes."


Vicki Lloyd said...

HUH? Did you mix up the captions on the "sold" vs "foreclosed"? Last time I checked, 19,821 is still a little bigger number than 19,145.

It is definitely horrifying anyway! I hate the idea of conservative, non-risk taking renters or homeowners who didn't use their home as a perpetual ATM machine, having to fund a government sponsored bailout with our tax dollars!

Markus Arelius said...

Thanks for noting my mistake. The numbers I wrote were in reverse. I've made the correction.

Brevard County Real Estate said...

It's kinda scary out there right now and how are they gonna do it is the American people will pay for sometime eventually interest rates will rise and high for a long period of time. Home ownership will become for the select few. Be glad that we have this inventory because this may be it for some 10 years.

Many people will no longer qualify for loans due to stronger practices than in the past.

Lets just hope the banks don't start calling in loans and then it's just truely sad and will take many decades to get out with many americians homeless.