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Distressed Homes and Bank Owned Condo Foreclosures Changed City Life

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By : John Cutts    99 or more times read
The impact of foreclosures, including bank owned condo foreclosures, has been felt by all U.S. regions in the past few years. Having some of the highest foreclosure numbers, California was one of the states that had experienced the far-reaching effects of the housing market crisis. Most of the local communities of the state have already adjusted to a life highly influenced by a limping housing market.

Bank owned properties in San Diego and in most parts of the state have recorded some of the highest totals in the U.S. in the past four years or so. The oversupply has resulted in rapid property value declines, massive loss of jobs in the construction industry, and a high number of families losing their homes to foreclosure.

In Merced County, the massive supply of California bank owned properties resulted in median housing prices declining by 68% from their 2006 peak to end 2010 at $116,000. Cities in the area have lost sales and tax revenues as the housing market tanked. To cope with this situation, most of them have adopted budget cuts and have also cut down public services and laid-off city workers.

Residents in the county have reportedly been quick to adjust to the reality of a housing market dominated by bank owned condo foreclosures and distressed homes. According to local officials, the housing crisis resulted in local government revenue from property taxes to decline by 25% within a three-year period. Revenue from sales taxes also declined by 24% as there are fewer people willing or able to shop.

Dwindling city and county revenues meant less money to support police and fire departments. Local officials also revealed that the huge amount of bank owned homes for sale has resulted in public parks not getting groomed as often as before and senior centers shortening their hours of operations. Sidewalks are being repaired, using asphalt patches instead of the more expensive concrete.

Merced officials stated that residents of the county are used to better public service than what they are getting right now. However, with bank owned condo foreclosures and distressed dwellings still hammering the housing market, most of them have accepted the reality that, for now, some of the services they used to enjoy will be available in smaller doses.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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