Tucson Real Estate are you Ready for SOME BUYERS
August 30, 2007
Post Tags: some-buyers , sub-prime-mortgage-market , Tucson Real Estate , Tucson Real Estate News
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We found out a couple of days ago SOME BUYERS are still able to get loans. Whew, that’s a relief. I wonder if I should start going back into the office?
But the only thing we know about these “SOME BUYERS” is “They have to have a good job, good credit and cash,” So just how many of these “SOME BUYERS” are there.
An article written on August 8, 2007 “National Review Online” poses the question:
How Big Sup-prime Mortgages Market?
The answer:
Not very big at all.
Here is the quick breakdown of the analysis and article
- 44 million mortgages in the US
- 14% are sub-prime
- 13% late on payments
“So, all in all, when you work through the details and get down to the number that really matters, only about 0.6 percent of U.S. mortgages are currently in foreclosure. That’s up a hair from roughly 0.5 percent last year. That’s it.”
How Many SOME BUYERS are there? Let’s see 14% from 100% leaves 86% of 44 million mortgages are able to get a loan. 86% still qualify for a loan. They have a good job, good credit and cash.
“Honey, maybe we should get back to the office.” : )
August 31st, 2007 at 11:31 pm
hee hee
September 1st, 2007 at 9:24 pm
Have you seen this chart?
I think your numbers are a “bit” off.
September 2nd, 2007 at 10:07 am
Hi DAVE!
The article is wrong. Take a gander at this Bank of America ARM re-set chart…
http://blogs.ocregister.com/mortgage/resetbigchart.gif
September 4th, 2007 at 9:56 am
I agree that the sky is not necessarily falling - in some markets houses are still selling like hotckes.
But there are some concerns out there. Foreclosures are actually up by over 90% year on year compared to July 2006, according to RealtyTrac. That’s a big jump and it has the potential to get worse as ARMs reset in a flat price environment in which sub-prime borrowers are unable to refinance.
No one knows what’s next, but as an investor these are things I take into account when I’m making decisions. Time will tell…
September 11th, 2007 at 2:20 pm
bobby joe and DTI_MEW,
? HUH, You’re comparing national figures to a single banks reset chart?
Talk about apples and oranges, the only thing that chart tells me is that if you are invested in Bank of America you might want to think about moving those investment dollars before March of 2008
September 11th, 2007 at 10:20 pm
Hi Dave!
No… This is not apples and oranges. Your talking about the Sub-prime market. Unless we have 44 million mortgages in Tucson, I think you’re a bit off here.
In any case, the data still holds for Tucson. When the per capita wage for the avg. Tucsonan is $26K a year… an ARM is the ONLY way they are getting into a home. Period.
Just watch. This isn’t over by a long shot. As I’ve said the pain is just beginning.
Aside - I’ve been emailing people on Craigslist with offers. Found a few nices homes in the $220K range. I tell them to call me when they want to sell them in the $140K range.
So far, I’ve only received insults and e-laughter…. More of the same, hahaha. In the end I’ll be laughing. I told everyone this “boom” (bubble) was going to end badly in 2005, and they laughed in my face…”Housing prices always go up!”
Funny, that sentiment is changing…