San Diego Housing Market News and Analysis
Notes on the High End
Submitted by Rich Toscano on May 9, 2008 - 6:19pm
Note #1: My pal Ramsey has developed what he calls a "Contagion Indicator" wherein he tracks the percentage of San Diego NOD, NOT, and REO homes with original loan amounts over $500,000. Here are the April numbers. (Please note that the phrasing on the following table has been clarified a bit from the original post to avoid confusion).
Ramsey's Contagion Indicator
These numbers are a little higher than I would have expected given all the chatter about foreclosures being a low-tier-only phenomenon. It will be interesting to see how much this indicator changes in the months ahead.
Note #2: An informant in the RE business tells me that he has seen a very interesting change lately in the higher-end areas where he tends to do business. Properties in foreclosure have suddenly started turning into REOs on the market within a few weeks of the trustee sale. This is a sudden change from the delays of anywhere from 4 to 12 months he was seeing previously. Said informant believes that if the banks are starting to get their act together and getting REOs out on the market with little delay, that could cause the decline to pick up the pace in the higher-end areas.
Note #3: Jim the Realtor just put up a similarly themed article about how foreclosures are "Creeping up the Ladder."
(Unrelated) Note #4: Sorry, this is unrelated to the post topic, but a quick anti-bailout note: apparently there are real live humans manning the phones at the White House comment line. So feel free to give them a call at 202-456-1111 and let them know you oppose the bailout efforts.
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