Wednesday, February 17, 2010
Study Says 5 Million Foreclosures Imminent
IRVINE, Calif., Feb. 16 (UPI) -- A research firm estimated the number of U.S. homes headed for foreclosure would be enough to stock the housing market with a 10-month supply of unsold homes.
The study done by John Burns Real Estate Consulting Inc., said that 5 million homes, including condominiums, owned by owners behind on their loan payments would eventually fall into foreclosure in the next few years, The Wall Street Journal reported Tuesday.
The study called these homes the "shadow inventory" of homes, which would take 10 months to sell at the current rate of sales on a national average.
At the current rate of sales in Orlando, Fla., the homes would take 27 months to sell. It would take 24 months to sell these homes in Miami and 18 months to deplete the stock at the current sales rate in Las Vegas.
The study said there were 7.7 million mortgage accounts behind on their monthly payments. The study predicted a large majority of these would fall into foreclosure.
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There are certain laws.
ReplyDeletePut an egg in the upright palm of your hand. Turn your hand over. The egg will fall. This is the law of gravity.
Borrow more than you can repay, there will be consequences. This is the law of economics.
These laws are real, like them or not.
Dear 11:35 am.
ReplyDeletePut an egg in the upright palm of your hand.
Now rub your belly while patting your head.
11:35 ... the only problem is that you and others who may have been more careful are also going TO PAY.
ReplyDeleteDo you think that the Bankers and others did not know that this would all happen and be ready to take advantage of the situation?
You also might consider who it is that writes some of these "laws".
Don't worry !!!
ReplyDeleteThis afternoon I took a good customer out to lunch at an "upscale sports bar" we watched Jim Cramer on the TV while awaiting lunch.
"The Presidents economic package has indeed showed up as evidenced by new home construction that posted it's strongest gains in more than 6 months/ up 2%. And John Deere which beat the street"
This guy went on and on about how we're in a beginning bull market & I kept my mouth SHUT hoping my customer was taking all this great economic news in.
He was listening and made several comments; but it didn't get me any more business than we already had on the books.
These guys on TV CANNOT be serious !!!!!!
John Deere !!!!!!!!!! Hell; they had like 3 rounds of MAJOR layoffs and I just happen to know a local JD dealer - he ain;t selling squat.
Housing !!!! He CANNOT be serious we were at 1.5 - 1.6 million a year - we are now below
1/2 a million and this guy is taliking Bull ??
It's BULL alright and baby --- they are peddlin' it all the way to the bitter end !!
People that can preserve capital through the crash are going to be able to buy assets pennies on the dollar.
ReplyDeleteLet's string up the elite and leave them all to die!
ReplyDelete2:41,
ReplyDeleteYou are absolutely right.
We are going from a era of relatively cheap food, energy and transportation, but very expensive shelter to the reverse.
Property values must crash so most people in the West can afford $200 - $400 a barrel oil. Meanwhile, the poor around the globe will begin starving due to really expensive food.
It's hard to starve when the average human carcass has 100 pounds of meat on it. That's enough to feed the typical middle class white suburban family of 5 for a month!
ReplyDeleteMmmm banker stew.
@11:55
ReplyDeleteThanks for the advice. I knew the egg example would flip somebody's switch!
Once again the Big Word IMMINENT......when is imminent????? a lot of people here have very short memory, there were so many things that were supposed to be imminent and then nothing happens...
ReplyDeleteHow about you wake up tomorrow and your gov has set off a nuclear weapon in an American city?
ReplyDeleteIs that imminent?
4:40,
ReplyDeleteIf you're looking for the economy to cease functioning, it won't. We'll just get more foreclosures, higher interest rates that will continue to assault property values and government revenue, and of course, raise the unemployment rate. Then one day, the government will revalue the currency to resize debt. Sure, many people will get caught in the process, but most will adapt in some way, shape or form. Be that doubling up in a home, abandoning the family car, carpooling and/or cutting back on nonessentials.
Unfortunately, millions of Americans will join the ranks of hundreds of millions in the developing and simply starve to death.
4:40 I don't really know when this or that will happen because I am not a prophet or a soothsayer. However, We will have troubling days ahead in the not so distant future (just an opinion) based upon the current condition of states and federal government budgets. The feds can print more money and the states have to live within there means. I believe the young inner city teens will begin looting as they have no work or money. When they see some of the benefits their families have enjoyed from the state coffers become cut they will begin to raid in groups of a couple of hundred through the groceries etc. to steal what the perceive they need or want. I know that is a said commentary and assessment, but that is how I think it will begin.
ReplyDelete4:55
ReplyDeleteThe States have to live within' their means ??
Surely you jest !
If all "yuns" out there ain't figgered it out yet; the states have. How long can you run your checkbook in the red?
I can think of at least 10 states that have done just that ( in a BIG way ) for at LEAST 3 years now.
They come up with greatest fuzzy math accounting schemes you ever heard of ! You try overdrawing your account by one dime! It'll cost you at least
40 bucks for that little mistake.
Also - do not trouble yourself with rogue thug teenage "gangs" - if your prepared like you should be; you'll have little trouble from uninformed; ill equipped adolesence tyrants
out to try and scare a grandma out of her sandwhich.
The bankers knew what they were doing. Have you watched the Frontline videos on the derivative market? I think that there is a link to them here on this blog. PBS ran it again on tv. Greenspan, Rubin, Summers, all, Geitner, should pay for this. All the people at Goldman Sachs should pay. How? How can they refund the money? They can't. If there is an uprising, as I hear people talk of, I would hide my address and employee lists. I have listened to doctors talk about doing things to folks in DC that shocked me. Is the rage this prevalent? It's not just little guys that are angry, but the people who have lost homes and 401 K's. They want blood. I think that there will be real bloodshed. I heard a bomb got set off outside a JP Morgan office somewhere. Our country is on the cusp of a super depression. We are going down.
ReplyDelete8:57 I think we already are in a depression. A recession isn't supposed to last years and years, this is the start of the depression, right here, right now.
ReplyDeleteRiots?...Yes soon enough...I give it a year.
ReplyDeletePeople keep asking when the crash is coming,there won,t be a crash.Its more likely to be just a steady bit by bit fall to the bottom.Much like we have had over the last two years or so.
ReplyDeleteSmall business
ReplyDelete1) Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well……..
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