The housing market in Massachusetts has been a little different than the rest of the country as the high cost of living and taxation has created the environment where many people were taking extraordinary amounts of cash out of their homes. We wrote this last year on the subject.
If this is the case, we are looking at a potential bloodbath in Massachusetts as there will be panic selling when the income is not there that had previously come from equity. I have downplayed many of the bubble bloggers who are looking for a bloodbath, but if there is panic selling due to income concerns, they may be correct.
Now a report from ForclosureMass.com shows that this analysis was fairly on target. Foreclosures have doubled, and the cycle is really just beginning. Add this to an environment that has many mortgage lenders doing everything not to foreclose on houses, the market may be much weaker than we have seen.
Highlights of the ForeclosuresMass.com August Market Analysis Report, which examines data through the month of July 2006, include:
1,348 foreclosures were started in July 2006. On average, nearly 70 foreclosures were filed every business day in July.
– July 2006 had 55.66% more foreclosures than July 2005 (866)
– July 2006 had 120.62% more foreclosures than July 2004 (611)
When comparing the 12-month period from August 1, 2004 to July 31, 2005 with August 1, 2005 to July 31, 2006:
– Foreclosures increased statewide 43.48% (14,552 v. 10,142)
– Counties with the largest increases were Barnstable with a 71.53% increase (693 v. 404), Bristol (64.33%, 1,382 v. 841) and Suffolk (57.82%, 1,534 v. 972)
via Foreclosure Mass
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Foreclosure is a big big problem facing millions of Americans today, unfortunately it is just being address by our politicians to win votes – doing something about it will take them forever! if ever……….