O.C. ranks 3rd riskiest U.S. home market
October 9th, 2007, 8:38 am · 5 Comments · posted by Jon Lansner/ocregister.com
Register columnist blogger Jon Lansner files this item …
A top mortgage insurer said today that Orange County was the third riskiest housing market among the 50 largest U.S. metro areas. PMI Group’s math is based on a combination of housing and economic factors.
PMI’s quarterly housing update gave O.C. a 57.9% chance of price declines in the next two years up slightly from 57.7% when the measure was last reported in June. At that time, O.C. was ranked sixth riskiest.
This time around, PMI ranked the Inland Empire as the nation’s riskiest market, with a 60.8% chance of price declines, Las Vegas was second at 58.7%. Overall, the national risk was at 32.9%.
In general, PMI concludes: “The market is adjusting after a period of unprecedented expansion. It’s reasonable to expect price appreciation will flatten or decline in some areas until the excess supply has been significantly reduced. The length and depth of the adjustment remains to be seen.”
To read the report, CLICK HERE
October 9th, 2007 at 11:31 am
You have been warned several times. Housing in Orange County is a riskies investment. More pains ahead.
October 11th, 2007 at 12:05 pm
If OC is number three in home default risk, then it means European institutions and the government of China targeted us as such. The greatest threat to this nation’s security is, nobody knows really what the heck is goin on with the overall economy! John Mauldin dot com pointed out in his weekly e-newsletter dated 5 October 2007 that, “Subprime leaped to $1.3 trillion or 73% of all Adjustable Rate Mortgages (ARMs), in the first quarter, a 17 times jump from 2001. And 57% of mortgage broker customers with ARMs were able to refinance into new loans in August, given their low initial down payments and falling prices that have put their equity in negative territory. Estimates are the cumulative loss of subprime mortgages will be $164 billion in home equity and cost financial institutions $300 billion.” Mr. Maudlin continues his assessment of the national home market with, “In a rational world, a lender is better off taking a 20% loss and keeping someone in the home than losing 40%.
The problem is, how does a distressed homeowner negotiate with the CDO (Collateralized Debt Obligation) which owns their mortgage, which is in turn owned by European institutions and the Chinese goventment?” Mr. Mauldin makes a dire prediction for OC when he relates, “In the end, every major Texas bank (during the federal S&L bailout) was bought by a ‘foreign’ bank from New York, California and North Carolina.” Not one of ‘foreign’ banking establishment or government has has be found guilty of any crime against America.
October 12th, 2007 at 3:01 pm
[...] of price-decline risk. The latest results have seven of the riskiest 15 in California. (Read more HERE) We wondered what California community, from among this crew, you thought had home values in the [...]
October 12th, 2007 at 3:37 pm
Carlos Says:
October 9th, 2007 at 11:31 am
You have been warned several times. Housing in Orange County is a riskies investment. More pains ahead.
Carlos, Is that why you want to move to OC from your current residence in the Inland Empire? Hypocrite.