A new report released today continues to deliver bad news for the mortgage industry and some predict the US economy in general. Foreclosures jumped 30% in the 3rd quarter, of particular interest was this paragraph:
Foreclosure actions were reported on more than 446,000 properties the three months ended Sept. 30, up 30 percent from the second quarter and double last year’s third quarter. That brings the overall foreclosure rate to one in every 196 U.S. households.
The highest concentration of foreclosures were in California, Arizona, Florida, Nevada, Ohio, Texas and Michigan. And made up more than half of the total. And with the number of loans do to reset through the middle of 2008 this may just be the beginning of the foreclosure bubble. An interesting number to look at for me is the median home prices. According to this website homes in the Los Angeles area have slipped 10% over the last 6 months still leaving an average home in the LA area at $540,000. Which to me is simply overpriced.