New Home Sales Plummet - Foreclosures Rise
The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991.
More than 180 homes a day went into foreclosure in the Bay Area during the first quarter of the year, DataQuick Information Systems reported Tuesday.
Foreclosure resales accounted for 33.1 percent of all California resale activity from January to March. A year ago it was 3.2 percent.
Most loans that went into default originated between August 2005 and October 2006, according to DataQuick, which said the market was shaking off its "'loans-gone-wild' activity" during that time. We noted in this post how some East Bay builders are reducing prices so much that it is hurting existing homeowners that need to sell. Surely, this activity will result in short sales and foreclosures by some. Foreclosures and short sales in the Bay Area are creating investment opportunities for those with cash or leverage. International investors with strong euros and Canadian dollars are increasing their interest in U.S. real estate. Some forecast the euro to hit 2:1 against the dollar by years end. Another result of increased foreclosures in the East Bay
An increase in foreclosures has Contra Costa County Mosquito and Vector Control District worried about a recent rise in abandoned pools, which they see as a gateway to West Nile Virus risks. We’ve written about this before here.
Related Articles:
