look at that chart... many say real estate is due for a downturn... but then IYR goes up and up... short squeeze?
I used to mistakenly use IYR as a proxy for residential real estate. It has nothing to do with home prices. It's actually the ETF for the Dow Jones U.S. Real Estate Index Fund which is a basket of primarily REIT's and developers in commercial properties! Thus while it should have some correlation to the housing market it's really apples and oranges. I mean we all remember 2001 when the Dow was hanging around an all-time high while the NAZ was dropping 1% a minute.
I was at my friends ranch half an hour from Sacramento Cal. last Saturday.On the news, they were announcing year over year foreclosures.From June 2005 -June 2006 foreclosures are up over 100%.Placer county,which borders the western shore of Lake Tahoe had an increase of 118%.Sa Juaqin county up 76%.Sacramento county up 87%.And its probably going to get worse.The question is,how much more worse.
I was at my friends ranch half an hour from Sacramento Cal. last Saturday.On the news, they were announcing year over year foreclosures.From June 2005 -June 2006 foreclosures are up over 100%.Placer county,which borders the western shore of Lake Tahoe had an increase of 118%.Sa Juaqin county up 76%.Sacramento county up 87%.And its probably going to get worse.The question is,how much more worse.
wait till '07 when the creative financing comes due in large numbers, combined with media coverage jumping on the band wagon. Its gonna get WAY worse. These prices were never affordable in the first place. Even if prices just revert to mean based on income, it'll be a slaughter.
Up 100% from record low levels. Still quite meaningless at this point. To throw around inflatec percentages like that out of context is misleading ...
I agree with BlueHorshoe. I saw the same information for parts of Florida. The percentage increase looks bad but when you look at the numbers of foreclosures vs. owned properties the numbers are minute. If you have 10,000 homes and the number of forclosures go from 50 to 100 you have a 100% increase in forclosures ... to only 1% of total owned properties.