Tuesday, April 10, 2007

Inland Suffering

From the Marin Independent Journal:

[Leslie] Appleton-Young [chief economist for the California Association of Realtors], while expecting a continuing contraction through 2007, said the brunt will be borne by the inland markets of Southern California, the Central Valley and areas north of Sacramento. In those areas, she said, agents are coping with a growing inventory of unsold homes because of new construction in the suburbs and rising foreclosures on strapped lenders with riskier subprime mortgages, she said.
You [Marin] have, like, no inventory compared to Southern California," Appleton-Young said. "And Southern California's inventory is moderate compared to the Central Valley.
Appleton-Young said California's housing sector will continue to suffer for some time from a wave of foreclosures on homeowners with subprime loans. But she said the areas most affected will be inland areas, where many residents bought new homes with zero down payment loans during the price peak of 2005-06, only to see values plummet.

No comments: