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Foreclosures Up 75% In Top Metro Areas

From an increasingly anxious Reuters:

Foreclosures up in 75 percent of top U.S. metro areas

By Lynn Adler

NEW YORK | Thu Jul 29, 2010

NEW YORK (Reuters) – Foreclosures rose in 3 of every four large U.S. metro areas in this year’s first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday [in its midyear 2010 metropolitan foreclosure report].

Unemployment was the main culprit driving foreclosure actions on more than 1.6 million properties, the company said.

"We’re not going to see meaningful, sustainable home price appreciation while we’re seeing 75 percent of the markets have increases in foreclosures," RealtyTrac senior vice president Rick Sharga said in an interview.

Foreclosure actions — which include notice of default, scheduled auction and repossession — in the first half rose in 154 of the 206 metro areas with populations 200,000 or more.

"We’re not going to see real price appreciation probably until 2013," said Sharga

Cities with the 20 highest foreclosure rates were all in Florida, California, Nevada and Arizona.

As long as unemployment hovers near 10 percent and unrelenting foreclosures hang over the market, prices cannot stage a lasting comeback. Home prices are about 29 percent lower, on average, than peaks set four years ago

Unemployment and wage cuts are chipping away at confidence and could slice average prices as much as 10 percent [more] before a gradual climb resumes, many housing experts predict

Banks will take over at least a record 1 million mortgages this year, RealtyTrac estimated earlier this month, noting that more than 5 million loans are seriously delinquent and face foreclosure.

Which means how many more billions of taxpayer dollars will have to be shoveled into Fannie Mae and Freddie Mac?

More than 3 million households are seen getting at least one foreclosure notice this year, and this record will be surpassed slightly at the peak of next year, RealtryTrac expects.

We suspect the avalanche of tax hikes that are starting in January of 2011 will do a lot to guarantee that this prediction comes to pass.

Las Vegas had the country’s highest metro foreclosure rate in the first half of the year, with 6.6 percent of its housing units, or one in 15, getting a filing

The state of Nevada has one of the highest foreclosure rates in the nation, and it has the highest unemployment rate in the US. And yet we are supposed to believe that Mr. Reid has pulled ahead of Sharron Angle in the polls.

Of course, the real question is how long will our media masters be able to keep the American public from realizing that the housing debacle and the recession in general are entirely the fault of Mr. Reid and the rest of the Democrats in Congress.

They are in a desperate race to keep the voters in the dark until the 2nd of November.

This article was posted by Steve on Thursday, July 29th, 2010. Comments are currently closed.

2 Responses to “Foreclosures Up 75% In Top Metro Areas”

  1. proreason says:

    A friend’s daughter bought a house in Las Vegas in 2005. She was a teacher. Her husband was a cop. Combined income $95,000. The price was $795,000 and they put in a $30,000 pool. They put $0 down. Their venture lasted about a year and a half. (ps: typical mortgage payments on $825,000 at 6% interest (about the historical norm) would be more than 50% of their gross income).

    My friend, who is a pretty smart guy, refused to help them out. He lost his empathy when they didn’t take his advice.

  2. Liberals Demise says:

    But the Vice Fool on the Hill said the employment scene was improving.
    Guess the fool didn’t get this memo, huh?

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