Housing woes deepen in U.S. industrial heartland

spinbaby

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Thu Mar-15-07 02:55 PM
Original message

Housing woes deepen in U.S. industrial heartland

Job losses in the U.S. industrial heartland have left states like Michigan and Ohio more vulnerable to mortgage defaults, as home finance costs rise amid often moribund real-estate markets.

On a combined basis, Michigan and Ohio accounted for an out-sized 15 percent of foreclosures across the United States in January, the most recent month for which data is available from tracking service RealtyTrac.

(snip)

"In California and other markets, the problem was that housing prices raced away from incomes," said Dana Johnson, chief economist at Detroit-based Comerica Bank. "What happened here is that incomes have just fallen away from home prices."

http://news.yahoo.com/s/nm/20070315/us_nm/usa_subprime_midwest_dc;_ylt=As2Oa_o.p.TMjy79E0xIP4ADW7oF

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Tandalayo_Scheisskopf

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Thu Mar-15-07 02:57 PM
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1. Yet, for the last 15 years...

These same states are where the repukes found some of their most fertile grounds.

Reality bites. Hard.

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roamer65

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Thu Mar-15-07 02:58 PM
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2. Yeah, the price drop is even hitting very median homes here in MI.

Edited on Thu Mar-15-07 03:00 PM by roamer65

Prices are dropping by about 40 to 50k on homes that were around 150-160k in value 3 to 4 years ago. It's getting ugly.

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Tierra_y_Libertad

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Thu Mar-15-07 03:01 PM
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3. More to come as the people in the housing trades lose jobs.

Not just the carpenters, plumbers, electricians, but the folks who supply them, the truck drivers who transport the supplies, the retailers who sell the supplies, etc, etc, etc.

A lot of those folks bought houses with sucker loans.

Bad news indeed.

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