Conservatives: smart growth to blame for foreclosure crisis

Well known anti-government crackpot Wendell Cox has this to say about smart growth and the housing crisis:

From the WSJ – “Mr. Cox argues that the housing bust was concentrated in ‘prescriptively regulated’ areas, or those with extensive barriers to development. These differ from ‘responsively regulated’ metro areas, which allow development to meet demand. San Diego is prescriptive; Dallas is not. Portland is prescriptive; Houston is not. ‘If the prescriptively regulated metropolitan areas had instead had responsive land-use regulations, prices likely would have escalated at a much lower rate during the housing bubble,’ Mr. Cox writes. More modest losses, he adds, ‘might not have set off the financial crisis, or it might have been less severe.”

Read Mr. Cox’s analysis here

Do these morons think that the internet has not been invented?  All one has to do is to google “foreclosure cities” and you get lots of fun “facts.”

Like during the height of the crisis in 2009, there was not one “prescriptively” regulated city on the list of top 20 cities.

These conservative clowns ignore the fact that every city on this list is more like Houston – their all time favorite “freedom” city – and none at all like Portland – their most hated commie city.

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Highest foreclosure rate last year? Las Vegas

By Amy Hoak, MarketWatch (Jan 2010)

CHICAGO (MarketWatch) — The Las Vegas metropolitan area suffered a foreclosure rate that was five times the national average and the highest rate in the country in 2009, according to a report on Thursday by RealtyTrac, an online foreclosure marketplace.

The 20 cities with the highest rates of foreclosure notices were all in California, Florida, Nevada and Arizona — states with markets that got extremely hot during the real-estate boom, according to RealtyTrac’s year-end report.

More than 12% of housing units in the Las Vegas metropolitan area received a foreclosure notice in 2009. Overall, 2.21% of housing units nationwide received a foreclosure filing, according to the data.

But the trouble isn’t over yet, said James J. Saccacio, chief executive of RealtyTrac.

“While it was expected that cities from states with the highest levels of foreclosure activity would top the charts, there is evidence that we’re entering a new wave of foreclosures, driven more by unemployment and economic hardship than what we’ve seen over the past few years,” Saccacio said in a news release.

“Areas like Provo, Utah, Fayetteville, Ark., Portland, Ore., and Rockford, Ill., all posted foreclosure rates above the U.S. average in 2009. And markets like Honolulu, Minneapolis and Seattle saw foreclosure activity increase at more than twice the national pace over the past 12 months — although all three of those markets still had 2009 foreclosure rates that were at or below the U.S. average,” he said.

Assuming the unemployment rate peaks in the first quarter of this year, unemployment-related foreclosures likely won’t peak until late this year or early next year, said Rick Sharga, senior vice president for RealtyTrac.

“We’re projecting that 2010 will be statistically the peak [of foreclosure activity] … 2011 will be better, but it won’t feel like a housing recovery until 2013,” he said.

A slight slowdown

Meanwhile, Las Vegas reported a quarter-over-quarter decline in foreclosure activity in the fourth quarter. That’s likely due to a new regulation in Nevada that requires mandatory mediation before the execution of a foreclosure, Sharga said.

But in other cities, there was a similar slowdown in the fourth quarter compared with the third quarter. While in some places that could mean the markets have bottomed, the foreclosure process in other areas may have slowed due to procedural delays as lenders evaluated loans for the government’s Home Affordable Modification Program, Sharga said.

The RealtyTrac report examines areas with populations of greater than 200,000 and properties with at least one foreclosure filing entered during the year.

The 20 cities with highest rates

Here are the 20 cities with the highest rate of foreclosure notices in the country last year, and the percentage of housing units that received a foreclosure filing:

  • Las Vegas-Paradise, Nev., 12%
  • Cape Coral-Fort Myers, Fla., 11.9%
  • Merced, Calif., 10.1%
  • Riverside-San Bernardino-Ontario, Calif., 8.8%
  • Stockton, Calif., 8.6%
  • Modesto, Calif., 8.5%
  • Orlando-Kissimmee, Fla., 8.2%
  • Phoenix-Mesa-Scottsdale, Ariz., 8%
  • Port St. Lucie, Fla., 7.6%
  • Miami-Fort Lauderdale-Pompano Beach, Fla., 7.2%
  • Vallejo-Fairfield, Calif., 7.1%
  • Bakersfield, Calif., 7.1%
  • Naples-Marco Island, Fla., 6.4%
  • Reno-Sparks, Nev., 6.2%
  • Sacramento–Arden-Arcade–Roseville, Calif., 5.6%
  • Deltona-Daytona Beach-Ormond Beach, Fla., 5.3%
  • Sarasota-Bradenton-Venice, Fla., 5.3%
  • Lakeland, Fla., 5.2%
  • Fresno, Calif., 4.9%
  • Salinas, Calif., 4.8%
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