And why were those 4 states the riskiest? Because they saw the most hype from guru Real Estate investors who sucked in the sheep at conventions, trade shows and seminars (ie Learning Annex, LiveSouth, etc) and sold them tons of property they couldn't afford in mortgages they couldn't really pay at the top of the market.
Wow. Sounds frightingly similar to what happens in the here...I mean, in the pinks.
But then again, you also never get the truth from the hype driven media...housing starts are off, but primarily because greedy builders over built. Some states are showing year over year decline in sales, but that is compared to some of the greatest boom years in the RE market in 7 decades. And quietly, smart money (ie the non-sheeple) are accumulating on the dip and will sell into the next run.
And being in the mortgage business, I will certainly take the Fed's report over a mortgage company's report any day...funny thing...only 2 states showing price depreciation...and money for loans is 95% as easy to get and as only about .5% more expensive than it was in 2004 even for subprime.
RELEASE
May 31, 2007
Office of Federal Housing Enterprise Oversight
(OFHEO)
NEWS RELEASE
CONTACT: Corinne Russell (202) 414-6921
Stefanie Mullin (202) 414-6376
U.S. HOUSE PRICE APPRECIATION RATE REMAINS SLOW, BUT POSITIVE
OFHEO House Price Index Shows Four-Quarter Declines in Two States
Percent Change in House Prices
Period Ended March 31, 2007
(Estimates use all-transactions HPI which includes purchase and refinance mortgages)
State *Rank 1-Yr Qtr. 5-Yr. Since 1980
Utah, (UT) 1 17.01 2.77 48.29 269.99
Idaho, (ID) 2 12.27 1.69 64.25 253.03
Montana, (MT) 3 11.68 2.49 62.17 282.77
Wyoming, (WY) 4 11.67 1.34 60.96 171.25
Washington, (WA) 5 11.63 1.88 67.17 398.38
New Mexico, (NM) 6 11.21 1.40 57.12 235.57
Oregon, (OR) 7 10.77 1.26 69.00 361.52
Mississippi, (MS) 8 9.51 1.88 32.86 156.21
Louisiana, (LA) 9 8.10 0.53 41.31 145.80
North Carolina, (NC) 10 7.99 1.69 32.16 237.23
Nebraska, (NE) 42 2.63 0.56 19.91 158.03
Minnesota, (MN) 43 2.53 0.76 40.25 276.42
Indiana, (IN) 44 2.49 0.28 16.42 159.42
Rhode Island, (RI) 45 1.50 0.12 75.91 512.49
California, (CA) 46 1.19 -0.84 98.80 541.25
New Hampshire, (NH) 47 1.07 0.27 49.17 406.42
Ohio, (OH) 48 0.84 0.20 15.75 173.05
Nevada, (NV) 49 0.60 -0.52 95.75 311.68
Massachusetts, (MA) 50 -0.56 -0.47 43.52 626.29
Michigan, (MI) 51 -0.66 -0.20 14.26 220.85
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
www.younglife.org
