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Foreclosure rates in Wilmington on the rise

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WILMINGTON, NC (NEWS RELEASE) -- A new housing report out today indicates foreclosure rates in the Wilmington area are on the rise. These figures, coming from CoreLogic, show foreclosure rates in December 2011 at just over 2 3/4%

While that's up from this same time last year, the Wilmington rate is actually lower than the national foreclosure rate.

That rate sits at over 3 1/4%.

The report also says homeowners are having trouble keeping up with their house payments.

The local mortgage delinquency rate is at nearly 6%, more than it was at this time last year.

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Foreclosure Rates on the Rise?

How can this be?
It cannot be happening?!
We've been hearing from "Other" Local Competing news sources that:
1: High-end homes are selling again like it's 2006/07 again.

2: That Home Prices are NOT falling, but; going UP again.

3: There's *Plenty* of New Home Construction(s)/Permit(s) application(s).

4: Wilmington is a "Nich" Market, thus; we are "Immune" to what's happening Nationwide, Due to Our beaches/Colleges/Retirement Angle(s).
5: We got "nice" Weather, in other words, Northerner's,(No Offense to you Folks), are "buying" homes left & right.
6: CR, (Commerical Real-Estate), market is ok, with SF(square footage), Prices going UP.
7: Of course We have JOBS! Also!

Mean-while, Ignoring the facts,
1: This Story that I'm commenting on.
2:More layoff(s) are happening, using (Invista),as a recent example...
3: Several Major Employers have closed thier doors, or Laid-off many employees .
4: The City/County Goverments are both in Large Budget Shortfalls by millions.
5: Tax revenues are falling short of goals..
6: Infrastructure, Sewer/Water/Roads are in Dire need of Maintance & Repair
7: We have a growing "Homeless" Problem.. Wonder if it's related to "Forclosure(s)?
8: Crime is up drastically.
(I could go on, but.... the "list" would be very long...)
When Will Our Politicians, err, I mean Developers & Realtors posing as Politicans, begin to see the Math,and Facts, Mean-While telling the voters the Truth? Thus; beginning Taking action on the "Fact"(s)?

**Correct answer for 200 Alex.... What is *NEVER*?**

So As *THEY*, the afore-mentioned above, will keep smoking the "Hope-ium", While trying to sell/or say to the voting Public,You; the Dear Reader, Let's *Temporarily*, sell more bonds, putting the City/County into MORE & Deeper DEBT, Raise Property Taxes higher, (abit temporarily), to build a Convention center, and a Base-Ball Stadium! Build'em! They WILL come! Even, Maybe, just Maybe, buying homes, stopping the Fore-closure Crisis! Then They, (The errr, Politicians), can then focus on building that new bridge to,,,, NO-WHERE! (just kidding there).... Then focus on building a HUGE MEGA-PORT in South-Port! Though Wilmington City Council may have a'lil trouble annexing that area...
The Hits just keep on coming! Party like it's 1999!

This can't be

Obama and his buddies in the major media have ASSURED us that it's turning around.

This is not new

available data for the past 8 months has been pointing to an upturn in foreclosure rates. "Underwater" homeowners were expected to make the tough decisions to cut the property loose. Mortgage companies were expected to make the tough decisions now, before the election and a new administration. Mortgage lenders and banks are becoming more stringent and demanding in negotiating short sale terms. And those who went through short sales now find the tax man is looking at the amount of forgiven debt as income with taxes due on the amount forgiven.

Market is improving

While it is true that foreclosure rates are increasing, it is mostly as a result of foreclosures that have been in the system but not yet on the market for various reasons, one of which was the "robo-signing" issue that had now been resolved. This foreclosure inventory is something that our market, like others, will have to work through.
The very good news is that the sales numbers from February 2012 are up. The number of sales closed are up as compared to Januray 2012 and as compared to February of last year! This is very good news. I can tell you, from my perspective as a professional real estate broker, the market is busier now than it has been in years! If everything continues at the same rate 2012 will be a very good year for real estate! I would expect prices will be consistent for the next 12-18 months with the prices beginning to increase at a healthy rate as we clear through the current available inventory.
I encourage WWAY to contact me for all of the details. :)
Ashley

Nice Try

at garnering some free air time.

Part of the problem in real estate was caused by banks and lenders making silly loans which turned into toxic assets. That process was fueled by appraisers who based values in part on the contract sales price and did not have the vision to see the pending doom in real estate as they continued with their appraisal process.

The future is facing an oversized inventory of foreclosed properties which lenders had not put on the market; yet they will now have to do so to comply with banking regulations.

This will offer some unique opportunities for buyers with liquidity or borrowing capacity.

Nice try though.

My dear Ashley....

EVERY year is very good year for real estate, according to realtors. All the smiley emoticons and exclamation points will not erase a multi-year excess inventory. If you stopped building houses today, it would take eleven years to fill all the vacant homes, condos, and apartments that are available in the United States (so says the Oracle of Omaha).

When prices are going up, realtors scream...GET IN NOW, BEFORE IT'S TOO LATE...and, when things are like they are now, you scream, THERE WILL NEVER BE A BETTER OPPORTUNITY TO BUY!!

What a realtor really is is a cattle herder (or rustler) working the crowd coming or going. If the collective industry had any real ethics, you wouldn't have been putting folks into homes they couldn't afford, demanded to see pay stubs, etc., instead of "helping" them into a coming debacle all the while padding your bottom line.

Sorry, the real estate industry's credibility is shot. Yea, team! :)

My dear Same Ol'

It is the Mortgage and Banking industries whose reputation is shot, not the Real Estate industry, My Dear Same Ol'.

So Guest

would you say the appraisers who pandered to the lenders and realtors by providing unrealistic appraisals to get properties sold and closed should bear any portion of the blame?

And what about the Realtors who were marketing properties, even into 2008, with the promise that they could be flipped in 6 months or less for a nice profit. They share none of the blame either?

How about the attorneys who were closing the transactions. They're educated; they were handling the foreclosure process for the lenders. Did they not have an obligation to caution the buyers? Or are they exempt also from sharing the accountability?

A betting man might bet you're a Realtor, Broker, or Appraiser.

By the way, did the original Poster get his start in Real Estate Appraisal prior to starting his career as a Realtor?

Now a truly healthy sign is an indication rental rates are increasing. That will fuel better cash flow and bring some investors into the marketplace.

And if the lenders and banks are most accountable, how do you comment on the low interest rates? With the low interest rate levels currently present, and the available inventory of underpriced properties and REO properties and short sale properties, one would think Realtors are having a field day. But they are not. How do you comment on that?

There's enough blame to go around for everyone; so let the Realtors step up and take their share of it. The banks have already been beaten up.

Real Estate

If you are a betting man you would lose.I am in no way connected by any tenuous thread to that market. Caveat Emptor. Even the Romans knew that the buyer had to beware. Why blame anyone but yourself if you fell you got ripped off.
As far as lawyers go, I would expect nothing different.
In using your reasoning, leave the financial institutions alone because they have been beaten up enough, so let's beat someone else up? That makes no sense at all. If you want to beat someone up, beat up yourself for trying to be greedy and make a lot of money on an offer too good to be true.

In reply to GuestRealty

Oh, there's enough greed and blame to go around (including those sucker buyers who thought they could get something for nothing down). Those sectors you mention are certainly culpable, too, but for every realtor who can reference some snapshot data point demonstrating just what a GREAT TIME it is to buy a house, I can show you two illustrating the contrary.

What folks really need to be looking at are real wages in this country, an aging demographic, and the excess inventory that isn't going to get filled for a lot of complex sociological issues. That boom you saw in Wilmington in the 90's (partly the greatest generations retirement exodus) won't repeat itself here again. The boomers have not saved for retirement.

Prices are going down, down, down...so I guess, it just MAY BE A GOOD TIME TO BUY! God forbid you're an elderly person who needs to sell and transition into assisted living. We have four our five properties in my (relatively well to do) neighborhood that have been vacant for over a year. Just where are those buyers going to come from, I ask? What good jobs are here in Wilmington?

Realtors, like anybody in sales, may know their product and how to move it, but I'm not sure they are always knowledgable on the larger issues in play.

Around Wilmington, I see a lot of realtor carnival barking huckersterism.

In Reply

What you call hucksterism is really just plain old salemanship. It is always a great time to buy or sell whether it is real estate, cars, furniture, etc. What kind of salesperson that has a mortgage, car payments, kids in school and everything else would tell you that now is not a good time to buy or sell?
It is up to the individual consumer if it is a good time for THEM and to filter what they are hearing, as they have for thousands of years.
I am in way affiliated with the real estate industry, but it does not seem fair that you would disparage a whole industry when the majority of the people I know in the industry are good people.

Ashley

your statement is correct. The number of units sold is up.

But, you neglect to mention the average price per unit is down about 6%. You also need to factor in the extremely low interest rates and the number of foreclosures and short sales being cleared out of the inventory.

We still have a long way to go.