Vincent Farnsworth 7:30 p.m., April 24
Firm Predicts Second Wave of County Foreclosures
At a time when some local economists are forecasting a bottoming of the housing market, Blue Sky Capital is predicting a second wave of county foreclosures that could be worse than the one a few years back. Blue Sky says mortgages secured with Option ARM and Alt-A funding are about to reset at much higher rates, particularly in Carmel Valley. (Alt-A mortgages are between prime and subprime. Borrowers often have less than full documentation and unimpressive credit scores. Option ARMs are adjustable rate mortgages offering several different payment options.)
A similar controversy rages nationally. Today (July 24) Zillow.com said that national home prices have hit bottom, and 40% of 156 major U.S. markets should enjoy price increases in the next 12 months. But Radar Logic Research said that those calling a bottom "are being dangerously short-sighted."
According to Zillow, San Diego County home values rose 1.7% in the second quarter, less than the 2.1% gain of the largest markets as a group. San Diego values fell 0.1% from a year ago, worse than the 0.2% collective gain of the major markets.