Archived

This topic is now archived and is closed to further replies.

A2

Foreclosures at Record Highs in Mecklenburg County

26 posts in this topic

http://www.charlotte.com/mld/charlotte/16457640.htm

I presume all of those forclosures will wreak havok on the overall economy. Contrary to all those "bubbleheads" on Bloomberg and CNBC, who are touting more growth, these nimrods can't see the forest for the trees. They are the same idiots who led Americans down the slippery slope of the market crash of 2000-2002. If you buy what they are selling, than be prepared for what you get.

The largest part of the US economy is housing and consumer spending. All of these "so-called" record highs in the DOW (I say that since it is NOT an all time high when adjusted for inflation, but don't tell that to the idiots on CNBC), will soon be impacted as well as other syptoms of a slumping housing market. Between pesonal debt at all time highs, a deeply inverted yield curve, rampat money creation by the FED (devaluing our currency to dust), all time high deficits, and billions spent on wars,I predict an economy on a collission course with a Serious Recession.

People can call me a Bear, or a pesimist, but I consider myself a realist.

I think that this topic is Serious, as it impacts all of what we want for Charlotte. Once the impacts of the debt-laden consumer come home to roost, I think that Charlotte will see a dynamic shift to slower growth. I hope I am wrong, but with all of the facts clearly in the open, it is clearly reason for concern.

As for those who point back to the Financial markets as strength in the overall economy I want to point out one fact that escapes most:

The S&P ALWAYS lags the Housing market to the tune of 12-18 months. With that being said the housing market officially topped out in the 1Q of 2006. This means we are at a crossroads in the DOW and S&P, and literally on borrowed time before the pain begins.

Please note chart with article:

http://www.metrics2.com/blog/2006/11/03/we...would_trad.html

Oh and one other fact to note:

Since 1842, ALL years ending in a "7" have ended drastically lower, or even suffered a crash except for ONE!!!

A2

Share this post


Link to post
Share on other sites


A2,

2006 was the year the housing bubble got out into the main stream media. I think 2007 will be the year of the collapse of SubPrime lending.

http://ml-implode.com

I follow several other blogsters who have been covering this, and the delinquencies of the Y2005 and Y2006 mortgage pool in Subprime and Alt-A are getting very spooky. The shell companies that originated those loans will just fold, rather than buy them back.

Share this post


Link to post
Share on other sites
A2,

2006 was the year the housing bubble got out into the main stream media. I think 2007 will be the year of the collapse of SubPrime lending.

http://ml-implode.com

I follow several other blogsters who have been covering this, and the delinquencies of the Y2005 and Y2006 mortgage pool in Subprime and Alt-A are getting very spooky. The shell companies that originated those loans will just fold, rather than buy them back.

Share this post


Link to post
Share on other sites
A2,

2006 was the year the housing bubble got out into the main stream media. I think 2007 will be the year of the collapse of SubPrime lending.

http://ml-implode.com

I follow several other blogsters who have been covering this, and the delinquencies of the Y2005 and Y2006 mortgage pool in Subprime and Alt-A are getting very spooky. The shell companies that originated those loans will just fold, rather than buy them back.

Share this post


Link to post
Share on other sites

Quote: More than 80 percent of foreclosures involve homes valued at $150,000 or less.

Looks like many of these loans where to borrowers with credit problems

and loans that are subject to rise above prime. Looks like most of these loans where doom from the beginning.

Share this post


Link to post
Share on other sites
Quote: More than 80 percent of foreclosures involve homes valued at $150,000 or less.

Looks like many of these loans where to borrowers with credit problems

and loans that are subject to rise above prime. Looks like most of these loans where doom from the beginning.

Share this post


Link to post
Share on other sites

Could it be the rise in foreclosures is just because lenders are making more risky loans these days? Years ago it was pretty hard to qualify for a home loan and you had to put some cash down. These days it seems that almost anyone can get a 100% financed place they can barely afford.

Share this post


Link to post
Share on other sites
Could it be the rise in foreclosures is just because lenders are making more risky loans these days? Years ago it was pretty hard to qualify for a home loan and you had to put some cash down. These days it seems that almost anyone can get a 100% financed place they can barely afford.

Share this post


Link to post
Share on other sites


Stats like these make me feel relieved to be a renter. I may be throwing money away every month but I love the lack of homeowner financial stress.

Share this post


Link to post
Share on other sites
Stats like these make me feel relieved to be a renter. I may be throwing money away every month but I love the lack of homeowner financial stress.

Share this post


Link to post
Share on other sites

I've been renting forever, but now is not the time to buy. I am just waiting it out and watching with sadness all the stress those who never should have bought a couple of years ago are experiencing now.

Share this post


Link to post
Share on other sites

Charlotte is a little unusual though, because it has had a foreclosure problem for several years. I'd say around 2002 is when it began to pick up steam. At least much of the foreclosed property has been absorbed back into the private market.

In California and Florida, foreclosures have been avoided because property values have been rising so fast, that people could just re-fi their way out of it. Now things are really picking up.

Check out this chart. Trustee deeds (lender reposessions) are rising faster in southern California today, than they were back during the "bad years" of defense cutbacks in 1990-94. You all remember those years, right? When California paid it's employees with IOU's and Orange County went bankrupt? :unsure: And when an entire semi-new subdivision in Palmdale was blown up for a movie scene, because nobody lived there anyway?

http://www.sddt.com/Finance/EconomicIndicators.cfm

Share this post


Link to post
Share on other sites

I for one am not scared of the current housing market (in certain areas of Charlotte anyway). Depending on which part of Charlotte you are talking about a lot of housing is dirt cheap and IMO can only go up simply due to supply and demand. If you look at how many people are relocating to Charlotte, I would say that the University area housing market is in great shape. I just recently bought my house in October and before buying a house I made offers on two other houses and lost both of them due to other people making an offer the same day or being outbid (Just an example of how fast the houses are selling).

However, I can't neccesarily say the same for many nice neighborhoods in South Charlotte, as the housing market in those areas are completely different. And to be completely honest, I have no idea why South Charlotte houses are so much more expensive then University area houses. I do agree that they should be priced a little higher than University area houses, but not as high as they are. I think that many South Charlotte neighborhoods are overpriced and not worth the hype.

I live in a great neighborhood in the University area, close to Northlake and Concord Mills, and without giving up too much detail the house I bought is a nice two story house built in 1999 for $80 a square foot.

IMO, the real estate in this city is not in danger as long as you buy a house in the right area for the right price.

Share this post


Link to post
Share on other sites

The ALT area has been experiencing a similar high home foreclosure problem, believe there was a thread on it early last year, at any rate, perhaps it is a good barometer of things to come here. If it slows CLT's growth significantly perhaps this would be a good thing - it can take a breather and catch up on infrastructure and getting schools back up to par and then be ready to resume growth in a decade or two. That's assuming these problems are not more permanent, though I [optimistically] do not believe we are quite at the paralleled fall of Rome stage.

Share this post


Link to post
Share on other sites

This is a result of many factors. Banks have been pushed by Community Reinvestment activists to make housing available to lower-income households and geographies. Many banks have learned how to make money in this niche, but it's not without risk. The subprime lenders have gladly stepped in where banks have feared to tread. It's not a coincidence that many of the foreclosures have occurred in the "affordable" segment of the housing market. The national builders are not without blame. They're goal is to sell houses and every new subdivision has a realtors office that hooks people up with expensive (in the long term) loans. Consumers have bought into the house as a 401K nonsense, as well.

On the backend, the property vultures suck up the detritus and, often times, turn it into rental stock. This is occurring especially in University City.

Share this post


Link to post
Share on other sites


A2,

2006 was the year the housing bubble got out into the main stream media. I think 2007 will be the year of the collapse of SubPrime lending.

http://ml-implode.com

I follow several other blogsters who have been covering this, and the delinquencies of the Y2005 and Y2006 mortgage pool in Subprime and Alt-A are getting very spooky. The shell companies that originated those loans will just fold, rather than buy them back.

Share this post


Link to post
Share on other sites

This is a bad situation, and further illustrates how many people make bad decisions, or are not educated about their finances. If the majority of these can be tied to individuals buying houses and incurring debt well beyond their means - what does this mean for the more "mainstream" housing market?

A2, as to the overall health of the economy, I think you need to indicate which economy you are referring to, the one for the upper class, or the one for the lower :) One of these is chugging along quite nicely (I won't say which one).

Share this post


Link to post
Share on other sites
This is a bad situation, and further illustrates how many people make bad decisions, or are not educated about their finances. If the majority of these can be tied to individuals buying houses and incurring debt well beyond their means - what does this mean for the more "mainstream" housing market?

A2, as to the overall health of the economy, I think you need to indicate which economy you are referring to, the one for the upper class, or the one for the lower :) One of these is chugging along quite nicely (I won't say which one).

Share this post


Link to post
Share on other sites

mademan305,

Homeprices are very reasonable in many different areas of town but I stronly believe that the more expenseive homes in South Charlotte are due to 2 major reasons 1)proximity to uptown and 2)Myers Park High School, Providence High School and Harding University.

Not trying to impede on the CMS thread but those are my thoughts..

Share this post


Link to post
Share on other sites

Interesting that there were no foreclosures inside the 277 loop. I wonder how long that stat will hold.

Share this post


Link to post
Share on other sites

With regard to A2's comment, I think the US is becoming more like South America. Not just culturally from immigration - we're becoming more acclimated to corruption, and living with a currency that is being debased by excessive debt circulation. We're developing greater concentration of wealth, and forming a large underclass of uneducated and desperate people. There is also more belief in "the quick buck", than working hard over the long haul than there once was.

I'm not in the "gold bug" and "US dollars will by hyperinflated to worthlessness" camp. I think these trends won't take us to South America's extremes... I just think the solidly middle class country we were raised in, is changing.

Getting back to the foreclosure stats, in some ways this is a helpful thing. It creates more affordable housing - because prices must revert back to the point where investors can buy units, and rent them and still cover the mortgages. Those monthly payments will always be less than owner occupant "pride of ownership" levels.

It's unfortunate though, that so many of the houses end up in the hands of absentee owners who care so little about their community; they just squeeze them dry from lack of maintenance.

Share this post


Link to post
Share on other sites
Interesting that there were no foreclosures inside the 277 loop. I wonder how long that stat will hold.

Share this post


Link to post
Share on other sites

te name='DCMetroRaleigh' date='Jan 14 2007, 11:19 PM' post='671206']

I've been renting forever, but now is not the time to buy. I am just waiting it out and watching with sadness all the stress those who never should have bought a couple of years ago are experiencing now.

Share this post


Link to post
Share on other sites
Interesting that there were no foreclosures inside the 277 loop. I wonder how long that stat will hold.

Share this post


Link to post
Share on other sites
With regard to A2's comment, I think the US is becoming more like South America. Not just culturally from immigration - we're becoming more acclimated to corruption, and living with a currency that is being debased by excessive debt circulation. We're developing greater concentration of wealth, and forming a large underclass of uneducated and desperate people. There is also more belief in "the quick buck", than working hard over the long haul than there once was.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.