Hat-tip to the always excellent TheMessThatGreenspanMade for drawing attention to the DataQuick report.
California is the perfect recipe for housing crash destruction. Home prices totally detached from incomes or rental yields, and homes bought with no money down and interest only payments (70% of San Fran area buyers used interest only last year, 61% in San Jose, 78% in Vallejo!)
So what happens when values start to move south and REIC jobs disappear? It's pretty obvious - a sea of foreclosures. You ain't seen nothin' yet. Millions will now lose their homes. But don't worry, those realtors and mortgage brokers got paid!
January 25, 2007
California: Home of interest-only loans, the most overvalued real estate in America, and now... exploding foreclosures
Posted by blogger at 1/25/2007