The Foreclosure Report

East Coast Housing Market Weakens

A foreclosure tracking firm had this press release today. "A investment advisory firm and publisher of foreclosure property information firm, reported today that the seller's market of the last few years is coming to an end up and down the east coast. 'We're beginning to see price declines in most eastern markets in the 4th quarter of 2005,' said Alexis McGee."

"'The median home price in Boston fell 4.5% over the last three months. In Washington D.C. prices were flat over the last 30 days, but down 5.4% over the last 90 days. Realtors outside Manhattan in New York City report a shift to a buyer's market,' Ms. McGee said. She went on to say that while Miami, FL posted a smaller decline, the inventory there was up by 39.1% over the same time period."

"'Other Florida cities are showing similar price profiles, with the biggest inventory buildup on the state's west coast,' said Ms McGee. 'That buildup will lead to increased time on market and put more downward pressure on prices.'"

"She went on to say that she expected slowing housing markets to spark an increase in mortgage defaults in 2006. 'Our research has always shown a correlation between cooling markets and an increase in defaults,' said Ms. McGee. 'Homeowners in financial distress find it harder to sell their way out of foreclosure through normal channels, and there are too many high risk loans out there. Those chickens will begin coming home to roost later this year as payments on adjustable and interest only loans rise.'"

posted by Ben Jones @ 7:40 AM