Notices of Default spiked big for January. 675 filed NODs in January represents a 17% increase over December’s number of NODs, and is more than double the number of NODs filed for the same period last year. Will it ever stop?
New home sales in January dropped 48% from December’s 83 new home sales. January’s paltry 46 new home sales represents only a third of the number sold last year in January.
Resales also declined a whopping 24% from December’s resales. However the unit number of resales for January 2009 still remains higher than January 2008. January represents the fifth consecutive month of higher year-over-year unit sales.
On another positive note, January re-fis took a big jump; climbing nearly 65% from December’s numbers.
[click on the charts below to enlarge]
Thank you to our friends at Ticor Title for providing these graphs.
SmartMoney
Makes sense. Why would anybody buy a new home when you can purchase a bank owened property for half the price? Or for that matter, try to negotiate the price of a new home from a builder down to the level of a bank owned home?
Richard Stabile Bergen County Real Estate
The government has asked the banks to slow up on foreclosures and work on and redesign the mortgages where possible. The new stimulus package also includes provisions to work on the cram down and forgiveness of debt between the banks, mortgage holders and the government.
I don’t know what that will do in the long run or if it is the right thing to do to the tax payers.
However, I guess it is something to lessen the pressure on the market.
Richard
BanteringBear
“675 filed NODs in January represents a 17% increase over December’s number of NODs, and is more than double the number of NODs filed for the same period last year. Will it ever stop?”
Sure, but not for several years. This party is just getting started. More foreclosures = more price drops = more foreclosures = more price drops… it’s a positive feedback loop.
When you factor in the 600k jobs lost last month alone, you can kinda see where we’re headed. Think they were all renters? And the government thinks they can stop this train wreck. Hah! When will they realize that LOW housing prices IS what is needed and part of the recovery process? But they want to “stop” foreclosures. God save us all from these f***ing imbeciles.
We’ve only just begun to hear stories like the 15,000 people lined up like cattle outside of a job fair (Phoenix AZ) for a meager 500 jobs. There’s serious competition for minimum wage jobs. Check out the stories coming out of many areas of Florida. Soup and bread lines, as they’re already in a depression.
Anyone talking about a price bottom, much less a recovery, has lost their marbles and should be committed. This is about pain. Everybody loses- except for bankers, hedgies and friends with super yachts, multiple mansions, and Cayman Island bank accounts. Break out the torches and pitchforks.
smarten
BB says “break out the torches and pitchforks.”
Interesting comment.
More interesting given Bill O’Reilly had a commentator on his show this evening who fears we may be in for depression and revolution. Is that what you see BB?
SkrapGuy
Testify, BB, testify!!
Isn’t there anybody in govt. and in the media who is willing to say that foreclosures are the solution, not the problem?
And now they are talking about having the Treasury subsidize interest rates for banks who will lower the mortgage rate for borowwers who “are on the brink of foreclosure”. This is supposed to stem the still rising tsunami of foreclosures. Let me see if I get this right. So the guy who owes $400K on his now $250K house is going to be “saved” from foreclosure because the interest rate on his mortgage goes from 6% to 4%?? Somebody please tell me there’s more to it that this. Please.