Headlines – week of November 29, 2009
December 4, 2009
This is the first of series of article summaries I find interesting as I peruse the interest each week.
Fastest-Growing ‘Burbs Dive in 2008 (from USA Today)
Twenty-four of the nation’s largest suburbs-cities that grew at least 10 percent every decade since 1970-lost population from 2006 to 2008, according to the U.S. Census.
Five cities that grew fastest prior to 2006, but lost population since:
Mesa, AZ Anaheim, CA
Arlington, TX Santa Ana, CA
One-Fourth of Borrowers Are Underwater (from the WSJ)
More than 23 percent of people with mortgages owe more on their properties than they are worth.
Another 2.3 million homeowners are within 5 percent of being underwater, bringing the total of those who are upside down or close to it to about 28 percent.
About 5.3 million U.S. households have mortgages that are at least 20 percent higher than their home’s value, the First American report says. Borrowers owing more than 120 percent of their home’s value are the most likely to default, First American calculates.
The majority of underwater mortgages are in the following states:
- 1. Nevada: 65 percent of home owners are underwater
- 2. Arizona: 48 percent
- 3. Florida: 45 percent
- 4. Michigan: 37 percent
- 5. California: 35 percent
The report also notes that most U.S. homeowners have home equity, and nearly 24 million owner-occupied homes don’t have any mortgage at all, according to the U.S. Census Bureau.
Commercial loan defaults highest since 1993 (from Reuters)
The default rate on commercial real estate loans held by banks hit 3.4 percent in the third quarter, up 0.52 percentage points from the second quarter.
- At 3.4 percent, the default rate is the highest it has been since 1993 when it hit 4.1 percent.
- The default rate on apartment buildings is even higher, reaching 3.58 percent, up from 3.14 in the second quarter.
Bank failures tripled in a year (from UPI.com)
The number of U.S. banks shut to date in 2009 is triple the number that failed in 2008.
Most of the banks that failed this year are small, regional banks that fell victim to losses on real estate and consumer loans when unemployment surged to a 25-year high. However, many large institutions closed in 2009.
The cost to FDIC of closures on Friday alone was about $446 million.
The number of problem banks is 416 in the most recent quarter, the highest in 15 years.
The FDIC anticipates roughly $70 billion in losses during the next five years due to the failure of insured institutions.
For Florida, ‘end of an era’ of population growth (from USA Today)
The state that made population growth the linchpin of its economy for more than 60 years lost a net 58,000 people this year.
The state’s twin economic engines – tourism and construction – are sputtering.
The recession has had a measurable impact on the traditionally mobile USA by forcing more Americans to stay put because they can’t sell their homes or find new jobs.
For the first time since Florida became a state in 1845, more people are moving out of the state than in.
The number of migrants from the Northeast – traditionally Florida’s largest source of newcomers – has dropped almost in half since its peak five years ago as the state’s allure faded.
Florida, once the fifth cheapest state to live in, now is the 14th most expensive.
Is Boomer boom for real? (from news-journalonline.com)
Boomers are people born during the population burst between 1946-1964.
No. 1 in the nation was Flagler County with an astounding 53.5 percent increase in Boomer population between 2000 and 2006. No. 2 was Sumter County, home of The Villages, with 29.1 percent.
University of Florida’s Bureau of Economic and Business Research says in 2030, more than one in four Floridians will be 65 or older. Currently, 17 percent of the state’s population is 65 or older.