Sacramento Area Housing Depression Continues
Majority of homes with mortgages in area have negative equity, price drop continues In another sign of continued woes in local real esta...
https://www.elkgrovenews.net/2009/08/sacramento-area-housing-depression.html
Majority of homes with mortgages in area have negative equity, price drop continues
In another sign of continued woes in local real estate, Santa Ann Calif. based First American Core Logic reported yesterday that the majority of houses in the greater Sacramento area have negative equity, meaning the loan balance is greater that the current market value of the house.
According to the report there are 257,871, or 51.1 percent of all properties with mortgages are in negative equity a total of 276,834 mortgages, or 54.8 percent are in near negative equity positions.
The report did not break out individual cities in the Sacramento area.
Separately, Irvine, Calif. based RealtyTrac also reported discouraging housing numbers. In July there were 360,149 more foreclosures in California than June, a 6.42 percent increase.
RealtyTrac also reported that year over year foreclosure sales prices dropped 16.9 percent, or $35,605. The average sales price of a foreclosure in July 2009 was $175,503.
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Someone with some sense please answer these questions????
Why did Elk Grove hand out building permits with little control?
Why aren't there more people being held accountable for this mortgage meltdown?
Why are some of these mortgage brokers still in Business like Marty Daniels? Souza Real Estate? Lynette Wall? Dunnigan Real Estate packed up and got out of town fast. These people are all crooks!
Why were loans given to people who had no intention upon paying them nor the ability to pay them????
Why aren't more people especially State, County and City employees being allowed to walk away from their mortgages and leaving us with this mess? Especially a local Sac County Deputy Sheriff??? He makes money... these people should not be allowed to walk away! Instead of government cuts, create reveue and go after these dead beat mortgage holders! Lets collect on lost revenue! Their wages should be garnished immediately to help retore California!
How can you send this Sacramento County Sheriff Deputy to evict someone from a home when they have been evicted themselves???? This is an outrage!
Um, er, uh, I think "debtor's prison" is unconstitutional isn't it????
Better idea, fore warned is fore armed. Note to those who plan to come here from the bay area seeking sweet real estate deals. Remember what you read here in EGN, it's not all wine and roses in Sacramento (especially Elk Grove). High crime and plunging real estate values. Let the buyer beware....
Greed and corruption... I want to hear from Hume, Davis and all the government officials.... we demand answers!
Yes I agree Debtors prison to all that caused this meltdown!
Then Greed Prision for those who profited!
They there there only if they make $. When it doesn't and the whole thing blows up in their face, they wipe their hands clean and walk away, leaving someone else with the bag.
They know they can get away with it, so they do. They also know nobody is going to take legal action against them, so why should they worry?
In their mind it's OK for them to walk away. leaving the taxpapers with the problem. But of course, if it made $$$, they will be the first in line to collect the money. It's a win-win for them.
"Why did Elk Grove hand out building permits with little control?"
This is an interesting question, now isn't it. We did it because our city's business model requires future growth to sustain all previous growth. Without perpetual growth the city falls apart as we don't have an economy of our own to sustain us. Our economy is wholly based on more sprawl and more strip retail, with the Auto Mall square in the middle to provide vehicles for all our current and future car dependent residents while providing sales taxes to run the joint.
Come September 1st, not two weeks away, I get four fewer #52 E-Tran routes while our city spends a quarter million to encourage/subsidize new car sales at its auto mall. We're going to pay more for transit while shoehorned into a third fewer busses while E-Tran riders pay taxes to allow new car owners to buy cheaper cars. If future traffic on 99 and Elk Grove-Florin is what you want you're gonna get it.
Don't have to ask, never need to ask, why we handed out 4,500 building permits at the peak. We did it because we need the new homes to attract the new car buyers to pay the sales taxes to allow the auto mall and strip retail developers to contribute a token quantity of payroll and sales taxes but as importantly to fund city council member campaigns.
Anyone who's ever run on a platform for responsible growth, or even limited growth, has never once been elected and never can or will be elected. Mother's milk. Once our economy turns the corner we'll get right back into our perpetual sprawl engine...what other options do we have? Create high paying local manufacturing jobs? No...we don't manufacture anything anymore in Elk Grove, and what little we did have with JVC et al. we ran out some time ago.
What will our next "economy" be once we turn around this recession? Sadly, only more low density single use zoned housing and strip retail.
This is something called controlled growth! None of this was done. Banks were giving away money to greedy developers who were building substandard homes. Broker and Banks were qualifying people for mortgages who could not afford them in the first place. What type ot City, Developer and Bank allows a building to be constructed with NO tenants... example the strip mall behind BJ's. How are the hotels doing? That is what we are going to have empty next! People were using their homes as ATM's with over inflated values. This was Elk Grove on Cocaine.... snorting up the income with little to no regard for the future. Call it "Living in the Moment"! Instead of giving cash for clunkers give us $4500 to pay our mortgages and property taxes!
Any insight Isania?
I would absolutely be interested to know how our hotels are doing.
I remember that for our first twenty years of uncontrolled growth we didn't have any hotels at all. Then one day the Holiday Inn popped up at Laguna & 99 and I remember thinking that this must just be another freeway rest stop/motel...but we already had a ton of those near Mack. What business would a business traveler have in Elk Grove?
We didn't have a need for any large hotels for decades and now we have a half dozen. As all we have business-wise is strip retail, my guess is that our hotels must get most of their business from non-local corporate visitors -- public relations specialists from Framingham, MA to check on their TJ MAXX store, that kinda thing. But as retail is getting hammered, I can't imagine that our hotels are doing well. Project managers from GGP's Chicago office? Ha!
And then you ask why we don't get $4500 for our mortgages! Fantastic question! Why not $4500 for any other random foreign made product, huh? Why cars? Now that 2,000 Elk Grovian clunker people are now leveraged for the next 60 months with new car payments, there's 60 months where everything else in our local economy no longer has access to their spending.
I am particularly galled that in 2006 I bought a Honda Civic at our Elk Grove Auto Mall because of its MPG, and now, three years later, because I bought fuel efficiency to begin with, I don't even apply for Cash For Clunkers. Now I get to subsidize and reward earlier Elk Grovian bad buying decisions by allowing them a credit to buy more efficient cars. Bad, bad policy. It's mendacious to think this is gonna clean our air, save gas, whatever. No way. Our Elk Grovians are going to commute to their Bay Area relative's homes more often, now that they have more efficient vehicles.
As for hotels, our city council gave a multi-million dollars kickback, err subsidy, to develop a 'blighted' lot - the old Cal-Trans yard on 99 & EG Blvd. Read here: http://www.elkgrovenews.net/2008/10/how-to-turn-6000-into-multi-million.html
Have not seen much activity there yet.
I just read the Harley Davidson Dealer closed? There is nothing left... we have been sucked DRY! That mall needs to come down... as a matter of fact everything past the auto mall... winery. Lent Ranch all needs to go! Get out of town! Scatt, schooo be gone, Bye bye Lent Lady!
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