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Listing of Bank Foreclosures Drags Home Values Down in Atlanta

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By : John Cutts    99 or more times read
Housing market analysts are predicting that values of residential properties in Atlanta, Georgia will be more depressed in the current year compared with 2009. This prediction is practically the same as the one given to nationwide home value trends for 2010 by housing experts. Part of the reason cited is the high number of residential properties under listing of bank foreclosures.

With the supply of Atlanta foreclosed homes, GA remaining at record levels, industry analysts are projecting that residential properties in the city will lose over $28 billion in value in 2010. The figure represents a 14.5% decline when compared with the $274.8 billion which is the estimated total value of residential properties in the area for the year.

In 2009, when Georgia foreclosures started pulling the value of housing down, the metro area lost a total of $12.8 billion. According to area housing data, the residential property market of Atlanta had lost a total of $104 billion since the industry peaked in June 2006. Nationwide, the housing market is said to have lost value equivalent to $1.7 trillion since the 2006 peak.

The huge supplies of distressed properties and homes falling under listing of bank foreclosures have been largely blamed for the continuous decline in the value of residences, not only in Atlanta, but in the rest of the country. Although the housing market started strongly during the year, the initial performance failed to sustain market value and 2010 is now set to be even lower than the previous year's level.

Analysts stated that federal interventions like the tax credit have helped Americans who were trying to find out how to buy foreclosed homes, giving the last six months of 2009 and the current year's first half strong market performances. However, the market started slowing down once the tax credit ended. Housing experts stated that once the interventions were taken out of the equation, the market reverted to its true condition where supply outnumbers demand.

Most analysts believe that houses in listing of bank foreclosures will continue to increase until next year as lenders start taking over properties again with the nationwide moratorium lifted in almost all parts of the country. They added that it will take at least three years for the U.S. housing market to go back to normal.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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