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Low-Priced Cleveland Foreclosed Homes Still Abound

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By : John Cutts    99 or more times read
Lower-priced Cleveland foreclosed homes still abound, according to Ohio real estate analysts. The Ohio cities of Cleveland and Cincinnati have tied for 7th place on a list of top U.S. cities with the supply of homes still exceeding demand.

Although lower-priced foreclosures currently do not dominate home sales in Cleveland, home prices are still relatively low, making Cleveland among cities where bargains can still be found.

Based on an online real estate firm, the average home sales price in March was $93,138. It dropped to $90,454 in the first weeks of April.

Forbes magazine listed both Cleveland and Cincinnati in its top-ten list of cities with the highest number of unsold houses and longest stays of houses for sale on the market. Forbes cited double-digit unemployment rates as among the major reasons for weak activities in the housing markets of these cities.

In 2009, more than 22,000 homes in the Cleveland area were notified of delinquency and repossession, a relatively high number but it marked a 19-percent drop from foreclosure postings in 2008.

The number of Cleveland foreclosed homes dropped, but foreclosure properties still abound because the pace of home sales in the metro area has not been as strong as in other metro areas.

In contrast, the number of foreclosed homes for sale in Ohio increased in February month-over-month by 1.6 percent. Almost 11,300 homes were put into various phases of the foreclosure process in February, with 3,333 units already in the real estate owned listings of banks.

In January, foreclosure activity in Ohio slowed compared to December last year, but there were still more than 11,000 homes which entered foreclosure filings. As statewide foreclosure stepped up, the ranking of Ohio jumped up from 14th in January to 12th in February. The 12th place was also the ranking of Ohio in 2009, indicating that any housing market improvement in January was erased by further foreclosure activity in February.

Nevertheless, according to a certain group of housing market analysts, certain cities in Ohio, such as Cleveland, Cincinnati and Columbus, will recover faster than most other cities. These analysts said that the slight surge in home prices in Cleveland will further improve in the coming months.

They also said that banks in the area have decided to cut down their housing inventories significantly, reducing their prices for Cleveland foreclosed homes in order to rejuvenate the market and step up sales of properties in their books.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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