Close to 10% of all mortgages in CA are in “late payment” status. This must be a record. Optimistic unemployment is at 12.2%, which is also in record territory. Govt intervention is at a level no ones’ ever seen before. Foreclosure moratoriums, Mark-to-bubble pricing, etc…
Is this sustainable? I wonder how the lack of cash flow is effecting all the holders of these mortages that are no longer getting payments? Strategic default is also gaining momentum along with unemployment caused defaults.
There’s been downturns in CA real estate in the past, but none with this kind of environment before or intensity. Buying a house is a very expensive and long term commitment. I would think people would be looking for at least year-over-year improvement before making this level of investment.
