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Staggering Number of Foreclosures and low Demand Pulling Down Prices of Residences in Mega Cities of US

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By : Karen Anne    99 or more times read
Staggering number of foreclosures, running into millions and low demand is pulling down the price of residential units in the mega cities of US. Even in San Francisco as well as San Diego the prices are tumbling after having posted increases only a couple of months previously. Experts apprehend that a good number of markets will not show improvement until foreclosure numbers go down and more jobs are generated.

Maureen Maitland of Standard & Poor (vice president) said, “Unemployment is still high, people are afraid of losing their homes and credit is hard to get”.

According to a recent report (S&P) out of 20 cities prices fell in 18. In September it fell to 0.7% from the previous month indicating a drop in the second running month. Another report (The Conference Board) indicated that the people are regaining their confidence in the general economy. It increased to the highest point last November.

Despite this the housing market is depressed. It is mainly foreclosures that are weighing it down. The troubled houses are sold at deep discounts and thereby the value of other adjoining properties is lowered. Nearly 2 million loans are under foreclosure and an additional 2.4 million are lagging behind by 90 days on their mortgage dues as per the findings of LPS Applied Analytics.

Houses in the foreclosed category are dominating Tampa property market said Stephanie LeFew of Tampa Home Buy Realty. The number increase by 7% in the quarter starting from July from the previous quarter according to RealtyTrac. LeFew commented, “Buyers are getting discounts of 50% and more”.

Prices have never been so low in Tampa since 2003. It fell by 0.8% last September from the previous month as per index of Case-Shiller. At Tampa the median price during the quarter starting from July was $115,700 according to Zillow (Internet real estate analyst).

Foreclosures are also affecting the property markets of Miami and Phoenix. During the third quarter the foreclosure rate was 1:41; prices of residences dropped by 1.5% in September from August. In Phoenix the rate of foreclosure was 1:44. During the third quarter prices of houses dropped by 1.5% in September from August.

The worst foreclosure rate has been noted in Las Vegas – 1:25 during the third quarter. But there are indications of stability returning with prices ticking up by 0.1%. Retirees from California and New York are attracted to Las Vegas and buying houses paying cash.
Karen Anne, has been working on studying the foreclosures market, helping buyers on the finer points of foreclosures. Try to visit and search foreclosures for sale.

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