Columbus, Ohio Bottoming Out from the Real Estate Fallout?

When I first read USA Today's Housing Crash slows in 6 cities:  What the bottom looks like, my first reaction was of elation.  Finally, some good news!  But, then I attended the Short Sales class presented by J. Scott Stevenson, Esq. from Northwest Title and that presentation changed my perception of the situation.  Below are 2 charts that I find are the most telling of the situation we are in currently.

Loan Reset Chart

Yes, we are out of the subprime issues; however, there are more coming down the pike.  The graphic on the right (Loan Reset Chart) illustrates where we are on the types of loans that were issued and now are causing problems in 2011.  This chart demonstrates that the subprime market is pretty much past us as foreclosure issues; but, the Option Arm is going to give us fits for the rest of 2011 and into 2012.   From my understanding, Option Arms were targeted at homes that are $250k and above.  So while the subprime market ($249k and under) has slowed down on the foreclosure, there will be trouble ahead in the more expensive home arena.

Delinquency Rates 9/2010

If you look at the chart labeled Delinquency Rates 9/2010, you will see that Ohio and more specifically Central Ohio has a rate of 7-11%.  Just because we fall in the "middle" column, does not mean we are out of the woods.  It will take several years to get us out of the woods.  

Hold tight.  The rollercoaster is going up another hill.