America’s foreclosures

A map is worth a thousand words. That’s what Barry Ritholtz shows us and where you’ll find specifics. You’ll see the original tip on Chart Porn.

So is it time to buy? Not a according to a real estate professional I talked to about a month ago. He has years and years in the business, and it’s his opinion we haven’t hit bottom yet. In particular, he cautioned, Wisconsin’s beloved lake properties are about to take a nasty tumble as those foreclosures start to be known.

I’m going to be scanning NYC myself. I think America’s workplace productivity will plummet as this one goes around. 😉

Comments

  1. Anonymous says:

    I had a hard time w/instructions, normally I just use Realtytrac, http://www.realtytrac.com/home/

    Calculating Risk has had numerous stories about shadow inventory and the aggravating the problem in Lake Country is inventory just waiting to come to market . Again in LC lake properties are less (relative term) susceptible to further reductions compared to the influx of corn field mansion developments. 5ooo+ sq.ft homes are going to be a tough resell-who’s the buyer?

  2. If you’re a savvy buyer, now is a great time to be shopping the foreclosure market. Banks are practically giving their properties away. And why not, they’re not taking the hit, the taxpayers are. Remember, most mortgages are backed by the federal government. If a borrower defaults it’s Fannie and Freddie to the rescue. A pretty sweet deal for the banks. Privatize the gains, socialize the loses.

  3. I disagree Dan.

    You often hear that banks are not in the real estate business, they’re in the banking business. Not true these days. Banks are sitting on real estate all over the place. It’s actually very difficult to get a bank to take a distressed price for foreclosed properties.

  4. Strupp, banks are not in the property management business, they’re in the loan making business. They don’t want depreciating assets on their books. The fact is, they are discounting their properties significantly. Take a look at page 5 of this report (requires a brief download). It shows the ratio of median sale prices between foreclosures and non-foreclosures across several metro areas.

    http://zillow.mediaroom.com/file.php/978/ZillowResearchBrief_ForeclosureDelta_1.pdf