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Kentucky Weathered Bank Foreclosures Better than Neighbors

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By : John Cutts    99 or more times read
Oversupply of bank foreclosures and distressed homes also hit the state of Kentucky, but the region was able to withstand it better than nearby states if the number of empty subdivisions is anything to go by. Local realtors reported that not a lot of big-budgeted subdivision developments occurred in the area during the real estate boom.

According to local realtors, the impact of Louisville foreclosures and distressed properties in various areas of the state was not as heavy as it was in neighboring states like Ohio. In nearby regions, residential subdivisions that started development during the pre-crisis era got caught in the foreclosure debacle and most ended up empty and abandoned, with no assurance of when the projects will be completed.

Developers in the state expect building activities in stalled subdivision developments to continue in 2011. They also expect a decline in foreclosure inventories as more people are expected to buy foreclosures in Kentucky in the coming months due to improvements in the job market and in the general economy. In addition, developers stated that Kentucky, particularly in the northern part of the state, is more conservative when it comes to subdivision development even when the market was strong.

They stated the lower rates of taxes in the state also helped alleviate some of the impact of bank foreclosures, which would have been worse for subdivision developers if rates have been higher. Realtors and developers are predicting that several development projects will be running out of completed lots by 2013, with Campbell, Boone and Kenton Counties all expected to finish all subdivision projects before 2013 ends.

Although Kentucky is doing relatively well in terms of coping with the detrimental effects of home foreclosures, local market analysts did admit that an economic recovery is still needed for the area's housing industry to return to pre-crisis condition. They claimed that the state, particularly northern Kentucky, has weathered the foreclosure storm better than most U.S. regions, but it does not mean that problems with housing do not exist.

With bank foreclosures expected to hit record highs in 2011, analysts stated that areas that have fewer stalled residential property developments, such as Kentucky, will fare better than those with huge amounts of empty subdivision lands sitting idle as they wait for the market to improve.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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