The following is my latest blog post at Monticello.
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This is aÂ fascinating chart from the Wall Street Journal. Weâ€™ve known for awhile the Albany NY realÂ estate market has been relatively insulated from the home foreclosureÂ crisis. New Yorkâ€™s foreclosure rate is roughly 10% of the current homes for sale.Â By comparison, one of the worst states is Nevada â€“ 50% of allÂ homes for sale are in foreclosure.
As part ofÂ the WSJ reportÂ they looked at the top foreclosure markets and the numberÂ of FHA, Fannie Mae, and Freddie Mac foreclosures listed for sale by state.Â According to the chart, less than 800 homes backed by FHA, Freddie, and Fannie that are in foreclosure are for sale in New York. As compared to over 4,500 homes in Atlanta, GA and surrounding suburbs, 8,943 in California, and 5,767 Florida foreclosed homes for sale.Â
New Yorkâ€™s numbers are lower than actual number of foreclosures, in part because theÂ New York courts instituted a new rule which dramatically reduced foreclosure proceedings. I supported thisÂ move by the Chief Judge of the New York Court of Appeals.
This leads us to two national stories from last week. As reported the President proposed a newÂ Homeowner Loan Modification Program, allowing responsible home owners to refinance. This expensiveÂ proposition has a big hurdle to clear in the Congress. Second, theÂ New York Attorney General has filed a lawsuit against the banksÂ for methods and procedures relating to bundling mortgage backed securities.
You donâ€™t need an economics degree to know fraud and malfeasance undermine theÂ free markets, and our real estate market. Many suggest, and I agree, these illegal actions were contributing factors to the crisis. So if mortgage brokers, banks, attorneys, or real estate brokers committed fraud, they should be prosecuted to the fullest extent of the law and all current market actors should take note.
Buying and selling Albany real estate is complicated for all of the details and individualized steps in the sale. But the Albany NY real estate market, the Saratoga NY real estate market, and the surrounding Capital Region real estate market are all impacted by micro and macro market forces pushing and pulling on our regional economy.
At Monticello, weâ€™ll sort through the national stories and trends, so you donâ€™t have to. We will analyze the impacts on the Albany real estate market and surrounding Capital Region. As always, if you have questions donâ€™t hesitate toÂ contact us.
Alexander H. Monticello, Esq.
Principal Broker &Â