Monday, May 18, 2009

Housing Market Stress Indicators - Folsom & El Dorado Hills

As many had predicted, homes in more desirable areas are now defaulting at an increasing pace. All three markets have surpassed previous highs. However the number of foreclosures has diminished as a result of the legislation passed last year (moratorium on NODs....so the pipeline dried up).

We haven't been in our new neighborhood long, but already we are hearing some of the stories (Bay Area lawyers abandoning their home etc.) and seeing some of the fallout it creates (tensions among otherwise very friendly neighbors).

Note: I have removed the period where foreclosures in Folsom shot up, by approximately 100 units, then just as suddenly went back down. I believe it was a data issue, and not a big bank purchase.

5 comments:

patient renter said...

"and seeing some of the fallout it creates (tensions among otherwise very friendly neighbors)."

I don't get why people stress about this kind of stuff.

Buying Time said...

Probably not what you think...it was more of a safety issue.

Husmanen said...

Given that your area is new and was building out from approx 2003/4 to now, they may have a couple houses left, there are probably a number of people that are stressed about payments/refi/resets/recasts.

I have only see a few NODs in your area though and the few that went through to Bank Owned were purchased rather quickly, albeit lower prices than original owners but still rather high.

You may have a changing of the guard in the near future.

J said...

Thanks for the information and graph!

norcaljeff said...

No surprise, market is still falling. Economy is still in shambles. Unemployment still rising. Wages still falling.