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Foreclosure Rates Bringing Down Property Values in Harris County

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By : John Cutts    99 or more times read
Data published by the Harris County Appraisal District showed that the value of homes in the county has declined considerably. This decline, market observers believe, is largely due to high foreclosure rates in Houston which is the country seat of Harris.

Based on the latest data, values of residential properties in the county declined by 30%. This trend is expected to affect, not only Harris County, but other areas surrounding it. It is also expected that declining prices of residences will affect Houston foreclosure investing.

The low prices of dwellings in Harris County, Houston and surrounding areas have created a market of cheap houses in Texas. Residences priced between $80,000 and 150,000 are the ones that were hit the hardest by declining property values, the appraisal report stated.

In a further reaching impact, the high rates of real estate foreclosures in the area are also believed to have played a major role in the fall of Houstonís tax base. This, in turn, resulted in an overall decline of tax revenues in surrounding communities, including Harris. According to county reports, the tax revenue decline led to budget cuts that affected municipal utility districts, school districts and community colleges.

The continuous rise of foreclosures rates is expected to result in more than $11 billion of total tax rolls in Harris for 2010. This translates to a decrease of more than four percent compared with the previous year. Appraisal district officials also reported that only 1% of houses in Harris recorded increased values, with most of them located in Katy and Cypress-Fairbanks.

The problem of real estate foreclosures also had its impact on industrial and commercial properties, with the segment recording an 11% decline in value. With real estate foreclosures also contributing to budget cuts all around the state, Houston local officials are considering using layoffs and unpaid holidays if labor unions refused to agree to postpone previously agreed salary increases.

The high foreclosure rates in Houston and in other areas of Texas are having an impact on surrounding countiesí residential property prices. In addition, local budgets are also getting cut due to declining residential real estate prices.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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