Northeast Facing Weaker House Prices Due To Rise In Serious Delinquencies

From Bloomberg, "New Jersey Housing Suffers as Defaults Exceed Nevada: Mortgages" by John Gittelsohn and Prashant Gopal:

Serious delinquencies as of June 30 were up 6 percent from a year earlier in New York, Connecticut and Maryland, and up 5 percent in Pennsylvania and the District of Columbia, the Washington-based Mortgage Bankers said on Aug. 9. The rate fell by 27 percent in Arizona, 24 percent in California and 14 percent in Nevada, among states worst hit by the housing crisis.

Shadow Inventory

"Shadow inventory is falling in much of the country -- except for the Northeast," said [Mark] Zandi [chief economist at Moody’s Analytics Inc.] "The implication is that house prices will be much weaker in the Northeast in coming years as these distressed properties eventually get sold."