Housing industry experts are predicting that Michigan will remain in the top five states with the highest rates of foreclosures in the U.S. in the coming two years. This projection has also resulted in experts predicting houses for rent to continue to increase in the state.
The number of Warren bank owned properties and foreclosed dwellings in the rest of Michigan is forecasted to continue to remain high, making the state one of the regions with the biggest foreclosure numbers. Experts have also stated that the high unemployment rate of the area will continue to contribute to its housing industry problem in the next couple of years.
Michigan bank owned homes posted the fifth highest total in October 2010 among all 50 U.S. states. In addition, the region's unemployment was pegged at a high of 12.8% as of November of this year, ranking it second nationwide and only behind the state of Nevada. As of October, one household out of every 235 in Michigan is under foreclosure.
Most housing industry observers predict that this would mean that houses for rent will continue to increase in the state as residents would likely prefer to live in apartments and for-rent residences instead of taking their chances at homeownership. Market observers also stated that areas of the U.S. with the highest unemployment numbers are also the ones with the highest foreclosure rates.
For listings of bank owned foreclosures to drop, analysts claim that unemployment rate should go down to as low as eight or seven percent. Currently, national rate of unemployment is at 9.8%. The gloomy prediction for the Michigan housing market was not made exclusively by housing experts and analysts. A public opinion poll also showed that 58% of respondents expect the overall housing industry of the U.S. to take at least two more years before it levels off.
Meanwhile, around 22% of respondents believe that the market will not recover until 2015, while others are predicting an even longer period for the housing sector to balance itself. Most of them also stated that houses for rent might be a better option right now than buying a residential property, with majority stating that renting is safer than paying for a house in any market.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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