Misery loves company
Massachusetts and Rhode Island real estate markets are in select company: the two had among the largest drops in home values in the third quarter of this year, compared to the third quarter, 2006, according to the Office of Federal Housing Enterprise Oversight.
The agency publishes a widely-followed quarterly House Price Index that includes data from both home purchases and mortgage refinancings. Overall, the index posted the first quarterly decline in prices in almost 13 years.
Massachusetts had a 2.3 percent decline in home prices from the third quarter of 2006; Rhode Island, 2.2 percent.
Also, the agency found that those states and metro areas with high levels of foreclosures also had greater declines in general home values. No surprise there. But interestingly, when the agency zoomed in at the neighborhood level, it found that those areas with high rates of foreclosures had similar rates of price declines as nearby areas that did not have so many foreclosures.
Indeed, in some of the areas analyzed--Detroit, Riverside and Stockton, California--the non-foreclosure neighborhoods actually had even larger price declines than the nearby areas with lots of foreclosures.
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Gee, I wonder if that has anything to do with the fact that the governments keep bailing the foreclosed out?
Nah. Couldn't be.
What are you talking about? Various governments
have not bailed out any of "the foreclosed" to speak of.
The bulk of aid thus far has gone to, or been to the benefit
of, the lenders. And it's been A LOT of aid.
I really don't understand people who begrudge aid to the less
fortunate among us, but think it is just fine to offer that same
aid to corporate interests.
And Bush keeps saying economy is doing great!??? What is he on??? And didn't he become President to protect the US citizens?
WOOP DEE DO!! I've owned a studio condo in Boston since 1986. For the first 10 years it was worth about 30K. For the following 5, it went up to 55K. Since 2000 it shot up in value 15-20% a year. My 2007 assessment reflects a value of 225K and you're telling me now I can only get 220K for it???Call the real estate police. Who do I sue?
One way or the other foreclosed properties will have an impact on the local economy, would probably be to lock in the teaser rates. From a community standpoint his would have the most stabilizing impact on the local economy. If properties are allowed to default in large numbers the impact will be the ghettoization of neighborhood certainly not a good result for anyone. However, the locked in teaser rates should only apply to homeowner occupied housing. Since in markets where heavy speculation took place the only what to let this return to normal is too let mortgages default so property values can return to sustainable market levels.
This blogger might want to review your comment before posting it.
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