Number One, but it’s not good

Don’t get me wrong, Sacramento is a lovely city—especially when you look at it from a foliage perspective. We have nice trails nearby, an attractive riverfront. But we’re also number one, as reported this week by as the leading city in their article, “Worst Cities for Homeowner Debt” …and that’s not local, statewide or even regional. We are nationally at the top of the list.

What does this mean? Forbes is saying right now is not a good time to have such a high percentage of debt alongside the downturn in home values. They show an 18.5% percent drop in home prices (not enough, some say, to correct the inflated prices in the region). This drop in prices with a (possible) overextension of credit results in foreclosures. Yes, we’ve already been hit by a wave of foreclosures. If you don’t know someone who has been affected by the poor market and the (gasp) recession, then you don’t get out much.

I know of at least three families who have been hit by foreclosure. If you read the Bee, many who comment on the news site would say that it was because of poor budgeting on the part of the homeowner. I am not so sure I agree.

In the meantime, I suspect we’ll be seeing another wave or two of bad news before things get better. Hang in there, Sactown.

Comments are closed.

Terms of use | Privacy Policy | Content: Creative Commons | Site and Design © 2009 | Metroblogging ® and Metblogs ® are registered trademarks of Bode Media, Inc.