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Foreclosed Townhouse Homes Rise but Student Homes Offset Increase

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By : John Cutts    99 or more times read
Foreclosure rates continue to rise in Michigan in October 2010, with total number of foreclosed houses and townhouse homes increasing by 17% when compared with September 2010. The region was ranked fifth nationwide in terms of foreclosure rates for October, but some local areas did not feel the full impact of the foreclosure increase due to the strong student housing sector.

The number of foreclosed residential properties jumped in almost all parts of the state for October. Grand Rapids foreclosures increased, but the highest climbs were recorded in Livingston, Oakland and Monroe. Overall, one household out of every 235 were under some form of foreclosure in the state during the month.

However, some areas like Ann Arbor were able to keep a somewhat balanced market despite the rise in the number of Michigan foreclosures for sale mainly because of their active student residential markets. Compared with other local areas in Michigan, Ann Arbor did relatively well in October, particularly in areas where thousands of university students prefer to live.

Foreclosed dwellings and townhouse homes continue to rise in several counties, with most of these areas having an oversupply of foreclosures with very few potential buyers and renters. In Ann Arbor, demand for student dwellings continues to rise, prompting developers to build additional condominiums and apartment buildings. A number of market observers have warned that these building activities will eventually harm the city as it is already filled with residential units.

According to housing analysts, house foreclosures will likely rise in Ann Arbor and in other areas of Michigan that are currently engaged in building additional student housing units. They stated that aside from creating an oversupply of residences, most of these areas are also suffering from rising tax delinquencies.

Although tax delinquencies will not directly cause foreclosures, unpaid taxes are actually good indicators of future foreclosure numbers. Ann Arbor has some of the highest amounts of unpaid taxes in the state and analysts are concerned that if this continues, foreclosures will be hitting the city in the coming months.

They further added that although foreclosed dwellings and townhouse homes have been relatively fewer in Ann Arbor in the past, the number is being masked by the presence of students in the area. However, most market observers believe that foreclosures will soon catch up with the city and with other areas that have similar market characteristics.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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