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Foreclosed Bank and HUD Homes Contribute to California’s Low Rank



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By : Clark Raitz    99 or more times read
Several metro areas of California were ranked in the bottom half of the nationwide list of best cities for businesses in 2010. According to analysts, one of the reasons for the poor showing of these areas is the huge supplies of bank foreclosures and foreclosed HUD homes which cause a depression in housing values.

Among those that earned a low ranking for 2010 was Riverside, located near the metro area of Los Angeles. According to analysts, the continuous rise in Los Angeles foreclosure rates is part of the reason for the area being considered a less-than-ideal place for business. Other California metros that did poorly in the ranking were Bakersfield, Sacramento, Modesto, Fresno and Stockton. Although foreclosure activities have been cited as part of the reason, analysts revealed that the primary culprit was unemployment.

Reports showed that foreclosed properties, including HUD homes, remained a primary problem in most areas of California in 2010. However, even more troubling for the state was its unemployment rate. Based on nationwide job market data, California was ranked third in terms of unemployment rate, with the region posting an average of 12.4%. When broken down into cities, three of the state’s metro areas were on top of the national unemployment ranking.

On top of escalating foreclosure activities and rising Los Angeles foreclosure rates, lack of available jobs has also hammered the region during the year. Overall ranking in the U.S. showed that Stockton had the highest unemployment rate among all surveyed cities at 16.6%. Stockton is followed by second ranked Modesto at 16.2%, with Fresno coming in third with an unemployment level of 15.2%. Bakersfield rounded up the top four with a rate of 15.1%.

Aside from having the highest unemployment rate among metro areas in the U.S., Stockton also had some of the highest levels of foreclosed properties, including bank foreclosures and foreclosed HUD homes. According to analysts, one household out of ten in the city was in foreclosure during the height of the housing market crisis. Along with Merced, Stockton is considered one of the foreclosed property capitals of the U.S. and it exemplifies the root of the economic trouble facing California, analysts have stated.
Original Post: http://www.foreclosuredatabank.com/foreclosures-blog/article/2374/foreclosed-bank-hud-homes-californias-low-rank on ForeclosureDatabank.com, your source of house foreclosures.

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