I agree that being in all cash is silly if inflation hits. I parked in CDs while I figure out what to buy. But for now, my principal is safest in CDs, since gold and real estate seem overpriced.
Dallas is a high risk area, since it is #3 in the nation for foreclosures, indicating speculative excess and that prices have a long way to fall.
Here’s a 2 copies of an article on Ben’s foreclosure report.
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Some foreclosure news from around the US. “Indianapolis, Atlanta and Dallas have the highest foreclosure rates among the nation’s 100 largest metropolitan areas, according to an industry report released today. ‘Indianapolis narrowly edged out Atlanta as the city with the highest foreclosure rate in Q1,’ said James Saccacio. ‘Most of the cities with the highest foreclosure rates have above-average unemployment rates and below-average home-price appreciation.'”
“Saccacio added that other economic factors such as decreasing affordability, rising interest rates and speculative buying can also fuel foreclosures. He cited Jacksonville, Fla., and Las Vegas, both of which documented foreclosure rates in the top 10 despite below-average unemployment and above-average home-price appreciation.”
“‘Because of the high home prices in many areas, more home buyers have stretched themselves financially with creative, and often risky financing that involves adjustable interest rates, interest only and negative amortization loans’ Saccacio said. ‘Home buyers with these types of loans are more susceptible to default and foreclosure when interest rates move higher.'”
Top Ten Metro Foreclosure Rates:
1. Indianapolis
2. Atlanta
3. Dallas
4. Memphis, Tenn.
5. Denver
6. Detroit
7. Jacksonville, Fla.
8. San Antonio
9. Canton, Ohio
10. Las Vegas
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The Dallas News reports on defaults in the metroplex. “The surge in North Texas home foreclosures shows no sign of abating. Next month, 2,961 homes are scheduled for foreclosure. That’s a 26 percent jump from the number of foreclosure postings for August 2005, Foreclosure Listing Service Inc. reported Thursday.”
“Through the first eight months of 2006, more than 24,000 Dallas-Fort Worth area homes have landed on the foreclosure list. That’s an increase of 15 percent from the same period last year.”
“Dallas County had the largest number of homes facing foreclosure in the latest survey. More than 1,400 residences are scheduled for sale at next month’s foreclosure auction. That’s 30 percent more than in August 2005.”
“‘Many households that were barely squeaking by last year will be pushed off the edge by these extra costs,’ George Roddy said. ‘With both the cost of living expenses and interest rates expected to continue rising, I anticipate that foreclosure postings will remain high for some time and may even reach a higher level than we have seen thus far this year,’ Mr. Roddy said.”
“The biggest jump in August foreclosures was in Collin County, which saw postings rise by 34 percent. Foreclosure postings in Denton County were up by 30 percent.”
“Texas has one of the highest home foreclosure rates in the country. Because the state has lagged behind the rest of the nation in home appreciation, homeowners who get in financial trouble sometimes find they don’t have enough equity built up in a house for a quick and profitable sale.”
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