"Overall, U.S. foreclosure numbers climbed steadily over the course of the year, with more new foreclosures reported in every quarter," according to James J. Saccacio, RealtyTrac's chief executive officer. "This trend appears to be moving the real estate foreclosure market back to its historic levels." Florida led the country and accounted for more than 14% of new foreclosures last year, in spite of a 29% decrease in new foreclosures in the state from the beginning of the year to the fourth quarter.
Thanks for that. Also found this article--looks like
some people are buying too much home--caviar taste on
a sardine budget:
http://cbs11tv.com/topstories/local_story_075190701.html
(CBS 11 News) NORTH TEXAS There's good news and bad news in the housing market. More people are buying new homes, but more banks are foreclosing on homes.
You see that beautiful new home and you have to have it, but financial experts say regardless of the economy what you may want, is not always what you need.
Construction zones turn into new homes, which eventually become new neighborhoods.
The Department of Commerce says housing starts are up 14 ½% nationally. That number is even larger here in north Texas.
“We got a lot of job growth in this area which is keeping this real estate market stronger then the one nationally,” said Andy Butchard, Parkside Custom Homes.
Buying a new home is more accessible then ever for north Texans and they're taking advantage.
“A person’s home is like their foundation that’s the American dream so to speak,” said Kevin Williams, Consumer Credit Counseling Services.
Experts at Parkside Custom Homes, based in Fort Worth, say its quality custom homes that are keeping them busy.
“Our sales have been increasing, everyone I know in the building business is doing well,” Butchard said.
But the news isn’t all good, according to economists buyers aren’t fairing so well.
“Many people get emotionally attached to the buying process and they end up unfortunately, getting into more of a home then what they actually can afford. Very few people come and say we can afford a half a million dollar home but we only want to spend two hundred,” Williams said.
Buyer’s eyes that are bigger than their pocket books caused an almost 30% foreclosure rate, says Realty Trac's monthly survey.
Experts say the lesson to be learned is that even though the market is good and a big new home tempting, be honest with what you can spend.
“It's the buyer’s responsibility to really estimate what they can afford to spend and not get into something that would be over their head,” Williams said.
The good news here in north Texas is that our market is doing great compared to other states. In fact, a majority of homes sales is coming from out of state, with people relocating to north Texas.
(CSB 11 News)
And what was the foreclosure rate 5 years ago? I do remember hearing about a year ago that foreclosures were at an all-time low.
A year ago prices were rising fast, so who needed to default on the loan? You could put a house on the market for what you owed, even if you'd financed it "over value" a few months before, and sell it quick. There was virtually no need for foreclosures at all.
Now prices are flat, and people default. So?