Foreclosure Surge Hits California
- Seth Howard
Economists are concerned at the recent surge in foreclosures in the state of California. With the size and economic influence of the state, they are concerned that the fallout from this increase could have a negative impact on the economy of the entire country.
Within the first three months of 2007, 11,033 home owners in the state filed for foreclosure. This number represents an increase of 800% over 2006.
One economist, Christopher Thornberg with Beacon Economics states that the current rise in foreclosures within a strong and steady labor market is both unusual and frightening.
Mr. Thornberg predicts that the current foreclosure rate will top out at approximately 4-5 times the current rate.
Other economists tend to not be so pessimistic. The fact that the housing market has been and is still recovering from an unstable period is being taken into consideration. Others also site that the overall strength of the economy will help the economy as a whole muddle through the challenges of the housing market.
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