By Scott Burns (MSN.Com)
Sure, there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.
Though the report had some dismal news -- such as the nearly 4.9% foreclosure rate in the Stockton, Calif., area -- a close look at the data also provides some reassuring information. It tells me, for instance, that the foreclosure crisis is a regional problem, not a systemic one. It could become a systemic problem, of course, but we're a long way from that now.
This news will disappoint the gloom-and-doom crew and all those seeking the excitement of financial upheaval. But it may be time to temper our worry and take a closer look at some of the year-over-year foreclosure statistics:
Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage-free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38% -- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less.
Where does Jackson fall in this equation? We certainly could be considered one of the "pockets of pain" that they refer to. With the major media outlets (including MSN.com focusing on the "Top 100" markets, how accurate is that for Jackson? How bad is it really? Probably not as bad as the media paints it generally, but worse than some areas.
Of course, no statistics in the world can minimize the pain of people here in our community that are going through the foreclosure process.
What are your thoughts? Is the foreclosure rate a "crisis" or just media hype?
Let us know what you think.
No comments:
Post a Comment