Tuesday, August 21, 2007

Foreclosures Up 55% in NYC

So much for the "New York will escape from the subprime mortgage meltdown unscathed" meme:

In New York City, the number of foreclosures rose 55 percent between July 2006 and July 2007, to 2,561 from 1,648. The increase in the Bronx was 54.3 percent, to 321 from 208; in Brooklyn, 50.6 percent, to 875 from 581; in Manhattan, 12.4 percent, to 253 from 225; and in Queens, 126.1 percent, to 882 from 390. On Staten Island, the number of foreclosures decreased by a modest 5.7 percent, to 230 from 244.


Other sources of foreclosure data suggest that there has been an increase in foreclosures in recent months compared with the same period a year ago.

PropertyShark.com, a real estate research firm based in New York City, reported that in the April-June period of this year, scheduled foreclosure auctions rose by 19.5 percent in New York City (and 146 percent in Miami and 202 percent in Los Angeles) from the same period a year earlier.

And as I keep reminding people, most of the really toxic subprime and Alt-A mortgages were only made last year, which means they will not be resetting until 2008.

Which means this has a long way to go before we reach bottom.

Unless Helicopter Ben gets up in his whirly-bird and lowers the fed funds rate down a few hundred basis points, of course.

But if that happens, inflation is REALLY going to get out of hand.

Especially since China raised interest rates again today because of high inflation.

We import so many goods from China, there's no way we can avoid importing some of their inflation.

All of this comes while GDP growth is stalling and government and individual debt are at historical highs.

Gee, it's going to be like the 70's all over again!!!

Thank God I still have my John Travolta suit!!!

Disco duck!!!

UPDATE: Along with the news that foreclosures across the country are up 93% come these two beauties, via Minyanville:

# The National Association of Realtors reported that in June the supply of houses on the market at the pace of sales was about nine months, double what it was two years ago.
# "We are estimating that we will see about 2 million foreclosure filings this year,'' Rick Sharga, RealtyTrac's executive vice president for marketing, said.

2 million foreclosure filings this year?

That's not good.

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