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Factors Behind Government Foreclosure Listings Problem Analyzed

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By : John Cutts    99 or more times read
Studies on the factors behind the foreclosure crisis, including expanding government foreclosure listings, have been conducted in an effort to understand the real problem and hopefully find some solutions. According to some research, the financial market downturn is not the only factor that caused the housing industry crisis.

Studies have claimed that it is not only the Wall Street and the financial industry that affect foreclosures. Other factors, such as suburbs having higher number of foreclosed properties compared with metro areas and changing demographics, have also been identified. As an example, there are now relatively less San Antonio bank owned homes than there are repossessed properties in suburbs.

Researchers have also stated that bank owned homes in Texas and in other states that have been identified as the top areas when it comes to foreclosure rates are starting to bottom out and that metro areas are showing faster recovery rates compared with suburbs. Demand for large homes in the suburbs has reportedly declined by almost three and a half million since 2000, creating a slower recovery for suburban areas.

The problem of bank owned and privately owned foreclosures, as well as government foreclosure listings, will not be solved even if global financial markets rebound in the coming years, researchers have asserted. According to them, several other factors will have to be addressed so that residential property markets can achieve a complete turnaround.

Foreclosure home listings in suburbs are expected to maintain their high numbers for a few more years at the very least since homebuyers in their thirties, the most likely age group to opt for suburban living, have been declining in numbers since the start of the decade. Researchers have also identified the growth in the number of people moving to cities out of suburbs instead of the other way around as another significant element of the foreclosure crisis.

The faster recovery of cities compared with their suburb counterparts is also supplemented by the increased number of condominiums being built in cities, with the number of people preferring to rent or purchase condo units instead of houses ever increasing as each year passes.

Researchers have also claimed that foreclosure problems, including government foreclosure listings expansion, are expected to continue in areas outside of large cities as home buying activities remain beyond the reach of foreclosed owners.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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