Programmer's Investing Notebook         :: Investing notes from a software developer :: | About Me |

Not a good sign. But I knew it was coming. And it's only going to get worse in the years ahead.

Do you know how to get information about the foreclosures in your area? Is there a website for that purpuse (I'm sure there is). I'd like to get access to that. I think it might be a good way to snap a bargain (not now, but in a year or two).

In January, 103,540 homes were in foreclosure, up 27% from 81,290 in December and 45% above last year. January's foreclosure total was the highest level since RealtyTrac began releasing monthly reports in May 2005.

January's 27% increase in foreclosures is consistent with the increasing foreclosure trend seen throughout 2005. In total, nearly 847,000 properties entered foreclosure in 2005, representing 0.7% of total households. This is still below the historical average of approximately 1%, according to RealtyTrac.

In our opinion, the recent sharp increases seen in foreclosures are indicative of the heightened leverage taken on by home buyers through the past several years of robust price appreciation and record-low interest rates. In addition, we expect the proliferation of adjustable rate mortgage (ARM) and interest-only mortgage products tied to the short end of the curve to provide an additional headwind as short-term interest rates continue to increase. For 2006 year-to-date, on average, the one-year ARM is 132 basis points higher than last year.

Reference
Foreclosure Surge Indicates Home Stretch, Barron's Online, INVESTORS' SOAPBOX PM (Need subscription to access)