Real Estate Wonk put a link from Federal Reserve in Richmond that show maps delinquencies beyond 90 days for exotic loans like subprime and 'alt A' in DC region and Baltimore.
Deliquencies are usually recorded when a borrower is 30+ days in arrears; non-performing assets usually refer to loans that are more severely delinquent — most often, 90+ days in arrears and including loans in default. [HW]
According to the Fed Reserve in Richmond data, the two types of loans that caused delinquencies and foreclosures are: 1) subprime ARM (adjustable) and 2) subprime FRM (fixed rate mortgage). Looking at the info from 3Q 2007 foreclosures, DC had subprime ARM in 3Q 2007 stands at 4.1% and subprime FRM 1.2%. Maryland foreclosure had both subprime ARM of 3.7% and FRM of 1.2%. And Virginia had subprime ARM 4.2% and sub FRM of 1.1%.
On the delinquencies side, the trends was not pretty. For 3Q 2007, DC saw 17.3% delinquencies on ARM, 12.6% on FRM; MD 20.5% on ARM, 12.5% on FRM; and VA 19.3% ARM and 11.6% FRM.
Here is what's striking. DC region is #2 (17.1%) on the top 10 states with non-conforming loans after California (25.3%). While New York is number 3 on the list. DC got into the list maybe because home prices in DC region on average is way above the conforming $417.9k loan amount (before Feds increased the caps).
click to see larger image
CRA-GMU has also data to show. From Sep to Dec 2007, Manassas and Prince William county had the highest listings that are short-sale and foreclosure in the area.
Going to Spring (open season to foreclosure), the outlook for the region remains weak (recession?). Fed already made a Sundae surprise by cutting discount rate (again!) for the n-th time.
Hey, landlords find deals in this crisis! That means, opportunities are out there. But, because credit crunch has spread beyond housing into other sectors of the economy, you really want to have a long-term outlook beyond 2008 and 2009 - to buying it low at this market and hold it for sometime - to reap the rewards of owning or investing.
Note: I am working on Feb home sales numbers, so check back later for the post.
Images: Fed Reserve Richmond
