Foreclosures Climbing The Economic Ladder

Rich Toscano | Fri, 05/23/2008 - 7:16pm | Add a comment

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I recently wrote that San Diego&039;s more upscale housing sub-markets aren&039;t out of the woods just yet. One of my arguments concerned the behavior of the region&039;s more creditworthy borrowers: it&039;s not that they stayed away from risky loans during the boom, just that the types of loans they tended to get took longer to reset than the subprime loans that are currently blowing up all over the county&039;s less expensive neighborhoods.

For a visual I point you to the mortgage reset chart hosted on the always-informative Calculated Risk economics blog. While I suspect that San Diego was a little ahead of the nationwide figures represented on the chart, the fact remains that the types of risky loans often taken out by the well-heeled have barely begun to reset. (This March article offers a more in-depth treatment of the afore-linked chart and the topic of Option ARMs, mortgages that can cause particular trouble upon recast given their negative-amortization payment schemes).

Now a bit of evidence for higher-end mortgage distress is starting to trickle in.

read more at voiceofsandiego.org

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The purpose of Professor Piggington's Econo-Almanac for the Landed Poor is to provide in-depth, unbiased analysis of the Southern California real estate market. The Econo-Almanac staff apologizes for having succumbed to the crass commercialism of ad banners and the like, but we have spent an enormous amount of time on the site in addition to more than a little money for data and financial publications. Our feeble attempts to get a little something back do not in any way affect the site's primary goal: to provide the most honest and accurate analysis possible.

Rich Toscano, editor of the Econo-Almanac, is an independent real estate analyst residing in San Diego, California. He has lectured about the housing market at UCSD and the USD Graduate School of Business, and his views have been sought by Money Magazine, The LA Times, the San Diego Union-Tribune, and numerous other news and financial publications. His email address is rich@piggington.com.

Professor Piggington, gentleman of Letters, pursuer of Philosophickal Enlightenment, and dabbler in the Dismal Science, is not reachable via electronic-post.

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Foreclosures Climbing The Economic Ladder

Rich Toscano | Fri, 05/23/2008 - 7:16pm | Add a comment

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