They’re Worried About Blight?
A story out of California tells us that
More than 100 houses a day are being foreclosed on in Southern California, up from 13 a day last year.
– and the big worry is blight setting in?
I think that if the economy of a state is such that more than a 100 families a day are losing their homes people would be worried about more than blight.
About 6 months ago I moved the majority of my retirement investments out of the North American markets, it involved a long talk with my adviser, but she agree’d even then that the US economy is headed in the wrong direction, and that it’s gonna get real nasty in fairly short order.
When I read things like this and this, I’m pretty sure that I made the right decision – it’s gonna get real nasty in fairly short order.
It’s hard to panic when one realizes the amount of home buyer equity at risk in many of the cases is near zero – recent loans, low rates, delayed payment schedules, etc. The mortgage holders are the ones losing equity based on what was paid (by the mortgage) against current market value.
I’ve been following housing for about 2 years, now. I think it might get very, very bad.
Although I agree with IRC for younger families, Boomers whose retirements are in their homes might have some trouble if they’re looking to cash out in a trough. Net worth being primarily in real estate is the new black.
Usually the trough hits below trendline: and this run up has been substantial.