All markets are not created equal. Take a look at this article:
Housing crisis differs cross country
From: Politico
By: VICTORIA MCGRANE
July 15, 2008
The housing crisis was not created equally across the country.
In the Rust Belt, long-weak economies and unemployment helped fuel foreclosures in the traditional cause-and-effect relationship. In the other worst-hit spots — such as California, Nevada and Florida — the crisis was helped along by a serious oversupply of housing.
The crisis has hit some areas harder than others. Nevada, California and Arizona lead the nation in the rate of foreclosure filings, according to RealtyTrac. In June, one of every 122 Nevada households received a foreclosure filing — four times the national average and up 85 percent from a year ago.
California, Florida and Ohio recorded the highest total number of foreclosures in June.
Home prices in some areas have managed to stay stable. “There are a handful of markets where the housing market is sort of chugging along,” said Nicholas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies. “But for the most part, the home price decline is pretty extensive throughout the country.”
Recovery also will come at different paces. Analysts expect that markets in the Northeast and the South — except in Florida — will recover ahead of the Midwest and could start to stabilize in a year or so. Markets in Las Vegas and Phoenix and throughout California will take the longest to recover.
• The national median single-family home price, as recorded by the National Association of Realtors, fell in nominal terms in 2007 for the first time since record-keeping began in 1968.
• Foreclosure start rates were up over the past year for all types of mortgages in the Mortgage Bankers Association’s latest national delinquency survey. The trade group, however, says that the magnitude of the national increase is being driven by “certain loan types in certain states” — namely subprime mortgages in states such as California and Florida.
• Subprime adjustable rate mortgages represent 6 percent of loans outstanding, but are 39 percent of foreclosures started during the first quarter of 2008.
• Combined, California, Florida, Arizona and Nevada represent 25 percent of total outstanding loans, but 42 percent of foreclosure starts in the first quarter of 2008.
• Analysts at Moody’s Economy.com predict that mortgage defaults will peak at 2.5 million in 2008 and fall to 1.6 million in 2009. They expect 4.5 percent of all outstanding mortgage loans to fall delinquent by the end of 2008 and remain there through mid-2009. That’s up from 3.5 percent of loans in delinquency in 2007 and 2.8 percent in 2006, according to Equifax and Moody’s Economy.com.
From: Politico
By: VICTORIA MCGRANE
July 15, 2008
The housing crisis was not created equally across the country.
In the Rust Belt, long-weak economies and unemployment helped fuel foreclosures in the traditional cause-and-effect relationship. In the other worst-hit spots — such as California, Nevada and Florida — the crisis was helped along by a serious oversupply of housing.
The crisis has hit some areas harder than others. Nevada, California and Arizona lead the nation in the rate of foreclosure filings, according to RealtyTrac. In June, one of every 122 Nevada households received a foreclosure filing — four times the national average and up 85 percent from a year ago.
California, Florida and Ohio recorded the highest total number of foreclosures in June.
Home prices in some areas have managed to stay stable. “There are a handful of markets where the housing market is sort of chugging along,” said Nicholas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies. “But for the most part, the home price decline is pretty extensive throughout the country.”
Recovery also will come at different paces. Analysts expect that markets in the Northeast and the South — except in Florida — will recover ahead of the Midwest and could start to stabilize in a year or so. Markets in Las Vegas and Phoenix and throughout California will take the longest to recover.
• The national median single-family home price, as recorded by the National Association of Realtors, fell in nominal terms in 2007 for the first time since record-keeping began in 1968.
• Foreclosure start rates were up over the past year for all types of mortgages in the Mortgage Bankers Association’s latest national delinquency survey. The trade group, however, says that the magnitude of the national increase is being driven by “certain loan types in certain states” — namely subprime mortgages in states such as California and Florida.
• Subprime adjustable rate mortgages represent 6 percent of loans outstanding, but are 39 percent of foreclosures started during the first quarter of 2008.
• Combined, California, Florida, Arizona and Nevada represent 25 percent of total outstanding loans, but 42 percent of foreclosure starts in the first quarter of 2008.
• Analysts at Moody’s Economy.com predict that mortgage defaults will peak at 2.5 million in 2008 and fall to 1.6 million in 2009. They expect 4.5 percent of all outstanding mortgage loans to fall delinquent by the end of 2008 and remain there through mid-2009. That’s up from 3.5 percent of loans in delinquency in 2007 and 2.8 percent in 2006, according to Equifax and Moody’s Economy.com.
First, let me say that what we are seeing today is a result of many factors, but some of the biggest were overaggressive products, LTV's and underwriting guidelines, as well as an overzealous focus on ARM and Option ARM financing. This, mixed with a loss of focus on doing what is best long term for the borrower became major causes. So here are some tips to apply today for success in any market:
- Make Integrity Your Greatest Virtue
- Customer First Mentality
- Focus on Total Benefits
- Stick to Fixed rate Financing
