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Commercial Foreclosure Homes and Short Sales Dominate Utah Home Sales

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By : John Cutts    99 or more times read
Some areas in Utah are experiencing high number of short sales and commercial foreclosure homes sales, with St. George serving as a perfect example. According to the latest housing market figures, 70% of home sales in the southern town are accounted for by foreclosed properties and short sales.

The impact of the recession and the housing market crisis can be felt in most areas of the state, with foreclosures dominating housing sales. Salt Lake City foreclosure investing has taken over regular residential property investing, while other areas, like Washington County, also suffers from high foreclosure activities. Sale of existing or new homes in Washington increased for the second consecutive month in May compared with previous year's numbers, although foreclosure sales are still higher.

Foreclosed homes in Utah remain a major concern as evident in home selling activity statistics. These selling numbers are also expected to decline in the coming months as the tax credit initiative reaches its end. Market analysts are expecting prices of houses to remain low in the next two or three years, which could hold back any hope for a recovery.

Despite the bleak forecast, analysts believe that the state is in a pretty secure position mainly because figures for commercial foreclosure homes and other foreclosed properties have seemed to hit bottom and the housing market will likely stop falling.

However, the number of properties available to people buying foreclosed homes for sale still leaves a lot to be desired as some areas continue to experience high foreclosure rates. In Washington County, the percentage of mortgages accounted for by foreclosures is 3.8% for May 2010. This is slightly higher than the national average of 3.15% and the Utah-wide percentage of 2.16.

The county also has over 2,000 foreclosed houses for sale, with around 600 already in some level of foreclosure, although they remain unlisted. Mortgage rates and home prices are believed to be bottoming out in the state, but analysts have stated that these positive figures will not be enough to herald a quick recovery.

Although majority of home sales in most areas of Utah are accounted for by commercial foreclosure homes and short sales, local housing market observers believe that the market has hit bottom and it can now start focusing on recovery, albeit a slow one.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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