According to this AP story, the number of homes facing foreclosure jumped 57 percent over the past year. The article states the U.S. foreclosure rate as one filing for every 534 homes. Some areas in FL and CA had more drastic results, with the Fort Myers area at a foreclosure rate of one of every 86 homes. AP and MSNBC state that the top 10 foreclosure rate states were Nevada, California, Florida, Arizona, Colorado, Massachusetts, Georgia, Connecticut, Ohio and Michigan.
When will we know that bubble has finally finished bursting? We will know when the popular opinion that it is a good time to buy real estate has vanished. Remember that the stock market is the real-time leading economic indicator of general optimism and pessimism. Even if it were to make new highs this year, will it be making them on diverging technicals?
Filed under: Economics | Tagged: bubble, Economics, foreclosures, housing market, real estate, second great depression
