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Realistbear

Reposessions Soar In Us Bubble Market: California

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http://www.dqnews.com/RRFor0506.shtm

California Foreclosure Activity Up

May 2, 2006

La Jolla, CA.——First-quarter foreclosure activity in California increased to the highest level in more than two years, the result of slower home price increases, a real estate information service reported.
Lending institutions sent 18,668 default notices to California homeowners during the January-to-March period. That was up 23.4 percent from 15,122 for the prior quarter,
and up 28.7 percent
from 14,501 for 2005's first quarter, according to DataQuick Information Systems.

UK repossession data out Friday. Will it mirror the market that matched the UK throughout the Great Crash?*

______________

*A.D. 1989-96

http://www.usnews.com/usnews/opinion/artic...60508/8edit.htm

Did Someone Say Bubble?

By Mortimer B. Zuckerman

5/8/06

Americans have a castle complex. They love their homes. Their place of residence is the largest and single-most-valuable asset of the vast majority of Americans--especially recently, when homes have soared in value in the most steep, durable, and geographically widespread boom of the past 35 years.
Caution.
Another danger looms from the large number of loans with an initial period of three to five years at low rates and no principal payments. Upon "reset," monthly payments on these loans will rise as much as 50 to 100 percent. In the next two years, about $2 trillion in mortgage debt will be reset in this fashion so that millions of Americans will get a financial shock that they can ill absorb. Why? Because 22 percent of borrowers in the past two years have negative equity in their homes, and 40 percent have less than 10 percent equity. A third of those who got adjustable-rate mortgages in 2005 have negative equity, and 52 percent have less than 10 percent equity, meaning that even a slight decline in prices would endanger their entire investment.
The result could be the vicious cycle of declining home prices, less consumer spending, a slower economy, and more foreclosures. This would detonate the easy assumption that everybody can make gobs of money in real estate and that real-estate prices will never fall. This is a good time for caution.

Ditto UK :o

Edited by Realistbear

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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