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Foreclosure Starts Fall to 2006 Level as Home Prices Rise


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2014 Feb 21, 6:29am   6,981 views  18 comments

by BoomAndBustCycle   ➕follow (1)   💰tip   ignore  

http://www.bloomberg.com/news/2014-02-20/foreclosure-starts-fall-to-2006-level-as-home-prices-rise.html?cmpid=yhoo

The rate of new foreclosures in the U.S. dropped to the lowest level in eight years as rising property prices erased negative equity and allowed more delinquent homeowners to sell without losing money. (according to the article above).

*****

So, what's all this I keep hearing about housing crashing in 2014?

#housing

Comments 1 - 18 of 18        Search these comments

1   Smallblock57   2014 Feb 21, 6:52am  

The article above is garbage as is any and everything on Bloomberg.

2   tatupu70   2014 Feb 21, 7:20am  

Call it Crazy says

Maybe because of the HUGE ramp up of foreclosures LAST month, they didn't have many to process THIS month....

Yep--for once you are probably correct. But, how does that signal a falling market if the pipeline is basically empty?

3   tatupu70   2014 Feb 21, 7:26am  

You're a Jersey guy, right? Here's the email I got today about the state of housing here:

http://luxuryhomesnj.com/blog/february-market-update/

Inventory is down, prices are up...

Sure doesn't look like a crash is coming. Not with the inventory levels where they are now.

4   Smallblock57   2014 Feb 21, 7:47am  

tatupu70 says

You're a Jersey guy, right? Here's the email I got today about the state of housing here:

http://luxuryhomesnj.com/blog/february-market-update/

Inventory is down, prices are up...

Sure doesn't look like a crash is coming. Not with the inventory levels where they are now.

Like the Bloomberg article, the email you received is also complete garbage because it was written by some realtor who makes a living suckering people like you into believing that everything is peachy and it's always a great time to buy.

5   tatupu70   2014 Feb 21, 8:48am  

Smallblock57 says

Like the Bloomberg article, the email you received is also complete garbage because it was written by some realtor who makes a living suckering people like you into believing that everything is peachy and it's always a great time to buy.

The link is all stats with almost no commentary. How is showing inventory levels for the past 3 years crap?

6   tatupu70   2014 Feb 21, 10:00am  

Call it Crazy says

Plus, the whole "low inventory" story is such bullshit to scare people into buying NOW because nothing will be available LATER...

lol--you realize Zillow is notoriously bad for inventory calculation, right? I bet at least 25% of those red houses are not on the market.

Further--the trend is clearly towards lower inventory, not higher.

7   tatupu70   2014 Feb 21, 10:40am  

Call it Crazy says

What's "lower inventory" mean???

You don't know what it means? It means supply is lower. And when supply goes down with constant demand, prices go up. That's what it means.

Call it Crazy says

If you're looking to buy in Westfield and there are 400 houses available now but 4 months ago 470 were available, will that stop you from buying because of 70 less houses???

Nope--it means I'll have to pay more for the house I do buy.

Call it Crazy says

Another bullshit argument... We all know Zillow isn't 100% correct (even MLS isn't 100%) but it doesn't take away from the overall picture, there still are a ton of houses available. I truly doubt Zillow is off by 25%, but even if it is 10%, that means that 90% of those houses are available in that small area...

There are not a ton of houses available as the link showed you. And it's not a small area. Inventory is low. Prices are going up. Those are the facts.

8   tatupu70   2014 Feb 21, 10:49am  

Call it Crazy says

Why, because the email blog you got from that realtor said so???

Because the data says so.

9   tatupu70   2014 Feb 21, 10:55am  

Call it Crazy says

There must be low demand—that's what we're seeing," said Glenn Kelman, CEO of Redfin, an online real estate brokerage based in California. "We saw a huge spike in demand last year, which is why we were so confident the market had bottomed. ... We're not seeing the same thing this year, so even though there aren't many homes for sale, there aren't many buyers looking for them, either."

A California realtor is commenting on NJ demand?

10   New Renter   2014 Feb 21, 12:03pm  

Call it Crazy says

So once again, how many houses does the average person buy??

Well the average duck has 15...

11   Tenpoundbass   2014 Feb 21, 12:28pm  

tatupu70 says

lol--you realize Zillow is notoriously bad for inventory calculation, right? I bet at least 25% of those red houses are not on the market.

25% of those homes probably float on and off the market, but that's usually the bank, realtor or the investor playing around with listing, getting a bite, the deal falls through. Rinse and repeat. I find Zillow pretty quick to change status of their listing. Their Zestimates, and out dated community stats that haven't been updated since 2006, are bogus. And they could probably do with out. I've noticed now they are lagging behind on keeping current with tax info, and the listings aren't as complete as they used to be. I don't know if that's because you have to be a premium member now, or what. But for what it is, just a MLS browser. I think their selections are as accurate/misleading as the data all of them are provided.

If you follow certain neighborhoods. You'll see the same houses, Zombie stock, never sold, never on the market, never off the market. Every neighborhood seems to have their fair share of these houses.

12   Bm05211983   2014 Feb 21, 1:07pm  

Renters Are scum lords

13   tatupu70   2014 Feb 22, 7:04am  

Call it Crazy says

Some more facts (data) from NJAR:

Inventory is at 7.1 months, which isn't a "low" number...

Prices look like they are flat, not up...

That is true. I should have been more specific and not said just New Jersey. South Jersey is doing horribly and bringing down the state averages. North and Central Jersey inventory is not at 7.1 months, I can guarantee you that.

14   tatupu70   2014 Feb 22, 7:05am  

CaptainShuddup says

I find Zillow pretty quick to change status of their listing.

I don't.

15   tatupu70   2014 Feb 22, 8:48am  

Call it Crazy says

What's the difference... 5 months, 6 months, 7 months..... That's plenty of houses available for sale!!!

It's a pretty big difference actually. The best indicator of future prices is current inventory.

Call it Crazy says

Oh, I see how that works.... make your baseless claims without proof, and when data comes out to prove you wrong, try the old back pedal route..... Nice..

Baseless?? Are you kidding? This whole string started when I posted a link to local data. Do you know what baseless means?

No data was presented that proved me wrong. I posted data to my local area, you posted a quote from a California realtor, then statewide data.

Call it Crazy says

I posted the inventory and sale numbers for New Jersey straight from NJAR... What do you want to do now, zero in on a specific street in the state to try and save face???

No, I already posted the local data--there's no need for you to post it again.

16   tatupu70   2014 Feb 22, 8:49am  

Call it Crazy says

Another baseless claim..... I've seen Zillow regularly update statuses within a day or two of the MLS... I guess that's not fast enough for you....

If I had said that Zillow NEVER updates quickly, then you might have a point. In general, Zillow keeps a lot of old listings. I noticed it last time I was looking for a house and it has been shown to be true several times on here.

17   Analyzer   2014 Feb 22, 9:00am  

A move by Wells Fargo Bank:
The San Francisco-based bank, which is the country's biggest mortgage lender, said recently that it would begin accepting scores of 600, down from 640, for FHA and VA loans, which require as little as a 3.5 percent down payment.

Ha, let the games being again. Sure we fixed the previous crisis..................

18   tatupu70   2014 Feb 22, 9:48pm  

Call it Crazy says

Let's refresh your memory, the original post #1 was about NATIONWIDE foreclosures.... I posted a chart from January's CA foreclosure starts... Then you posted some local real estate agents sales blog from a few cities in NJ, that had NOTHING to do with the topic in the OP....

So it's OK for you to post a CA chart on a nationwide thread, but I can't post my local market? Please educate me on your rules. In case you never made the connection--the point of worrying about foreclosures is that it increases housing supply. I thought it appropriate to comment on the supply in my area.

Call it Crazy says

Speaking of inventory, your resident "expert" in your area (the blog you posted) is listing an average of 3 months inventory, where NJAR for Union County is listing 5.3 months, so someone is "off"... So, who's data do we believe, a local sales agent, NJAR, or neither???

But, to get back on point, how does the local market in Union County relate to the OP of this thread???

Believe them both. The blog was talking about specific areas within Union County--not the entire county. I imagine that they're both correct.

And to get back on point. Like I said above--foreclosures become inventory so inventory is main topic.

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