Friday, January 28, 2011

Frightening Satellite Tour Of U.S. Foreclosures

Pretty scary satellite photo (click to enlarge) of Phoenix's foreclosures, each red dot represents a home currently in foreclosure, see more cities here.


At 1/29/2011 12:28 AM, Blogger Benjamin Cole said...

Nevada is just getting creamed by foreclosures as well.

Easy to build out from city centers in desert country, so supply surges in response to demand. You get no inflation, and now you get deflation.

That is the USA story--with open borders, goods, services, labor and capital flow in when there is demand. You get growth but little inflation.

The Fed can crank the presses up for years. Bernanke should put the lever on "maximum" and take a long nap.

At 1/29/2011 3:36 AM, Anonymous Anonymous said...

That's exactly backwards. Nevada got creamed because they can't build out. Most of Nevada is government owned. Las Vegas, home to 80% of Nevada's population, is completely ringed by government land and it is impossible to build out. Vegas literally has nowhere to expand. The result is no different than anti-growth "smart growth" laws: extreme volatility in prices.

At 1/29/2011 4:32 AM, Blogger Alessandro Machi said...

Thanks for posting this article.

For those interested there are three foreclosure blogs that may interest you. Swarm the Banks has links to the most current foreclosure articles from several dozen blogs.

UNfair FORECLOSURES chronicles the types of unfair foreclosures going on in the United States.

Parallel Foreclosure chronicles the outrageous mistreatment of american homeowners who simply wanted the opportunity to apply for HAMP without being pre-penalized.

At 1/29/2011 10:41 AM, Blogger Paul said...

"Easy to build out from city centers in desert country, so supply surges in response to demand. You get no inflation, and now you get deflation. "

Huh, no inflation?? I lived in Phoenix during the bubble years. Towards the end, the median home price went up 43% in one year in Maricopa county. In the long run, everything reverts to the mean.

And here we are.

At 1/29/2011 11:57 AM, Blogger juandos said...

An interview with Robert Schiller:

House Prices Could Fall For Years

At 1/29/2011 2:37 PM, Blogger Benjamin Cole said...

The page “Foreclosures by State” from summarizes the effects of home foreclosures in two U.S. states with high foreclosure rates: Arizona and Nevada. The author notes that Arizona’s economy was highly based on home sales and construction. Despite the end of the recession, the page notes that Arizona still boasts a 9.7% unemployment rate. Nevada has more foreclosures than any other state, according to the page. Not to mention, the author claims that Nevada also has the highest unemployment rate of any state in the nation – a 14.4% unemployment rate.

Randian--Nevada has more foreclosures than any other state. How could they not be building a lot homes (during the boom?).

Also, why has not the famously low Nevada income tax helped the state unemployment rate? Worst in the nation?

Is it because Nevada is trying to become successful on low taxes and gaming, and that formula does not work? Mexico has low taxes and gaming.

At 1/29/2011 4:56 PM, Anonymous Anonymous said...

How could they not be building a lot homes

That's not what I said. I said they can't build out. Land shortages cause acute spikes in land prices during times of high demand. That's why prices went up so much in Las Vegas. Land shortages do the opposite when demand slacks: prices suffer acute downward motion. You see the same in California and Florida, both states with strict statewide "smart growth" rules.


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