Tuesday, September 05, 2006

OFHEO Report: Sacramento Falling

OFHEO 2nd Quarter 2006 HPI (pdf)

Percent change in Sacramento house prices:

  • Quarterly: -0.38%
  • 1-year: 6.51% (Ranking: #154 out of 275 markets)
  • 5-year: 102.96%
By comparison, here are the figures from the 1st quarter of 2006:
  • Quarterly: -0.24%
  • 1-year: 13.18% (Ranking: #95 out of 275 markets)
  • 5-year: 112.23%
Graphs here.

1 comment:

Anonymous said...

Doug Casey, noted analyst at Casey Research has this to say about the general housing situation.

"Median household debt grew by almost 34 percent between 2001 and 2004,while net worth went up just 1.5 percent, according to the latest Surveyof Consumer Finances (a report issued only every three years). We suspect
that since 2004, the numbers have gotten much worse.

"The household debt-service ratio hit a record high, just shy of 14%, inthe first quarter of 2006. meaning that of every 100 after-tax dollars earned, 14 now go to servicing debt.

"The average American household now is carrying over $90,000 in debt, muchof it as adjustable-rate mortgages. In fact, interest rates on 22% of the $8.7 trillion in mortgages carried by Americans are scheduled to be reset this year. According to one observer of the housing market, the typical
ARM will bump up from a manageable 3.6% to an uncomfortable 5.6%, which
would mean an increase of $800 a month on a $500,000 mortgage.

"It gets worse. In 2005, 40% of all new mortgages were adjustable-rate, and they will start resetting in 2008 and 2009. And Fannie Mae reports that almost two thirds of all sub-prime loans will be reset in 2006 and 2007. Many, perhaps most, of the borrowers will get squeezed, and more properties will hit the market after lenders repossess them."