Cities with More Foreclosures at House Auctions Are Vulnerable in 2011- By: John Cutts
Analysts have stated that for housing markets in the U.S. that have high levels of foreclosure activities and big numbers of distressed homes offered at house auctions, 2011 will be much the same as 2010 or could be even worse. Data from Clear Capital showed that nationwide housing prices dropped by 4.7% in 2010 and much of the same is likely to happen in 2011.
Foreclosed and repossessed houses for sale totals in 2010 broke 2009 records and values of properties dropped in almost 70% of all U.S. markets. For 2011, analysts are predicting that 35 out of the 50 biggest housing markets in the U.S. will record further declines in housing values, with national residential prices projected to drop a further 3.6%.
Despite the lack of optimism among analysts when it comes to gauging 2011 housing market conditions, data from Clear Capital did show that there are areas that will improve during the period in terms of number of properties under foreclosure list and housing unit prices. These areas, like California, have already shown promise in 2010. Latest figures show that six metro areas in California posted home value gains in 2010, including San Diego, Fresno, San Jose, San Francisco, Riverside and Los Angeles.
Housing market observers have stated that continuous rise in foreclosed properties at house auctions and rising unemployment levels will hit housing values in several areas like Florida, Arizona and most of the Western region of the country. Dayton, Ohio and Oklahoma City were also cited as cities that will record further price declines in 2011.
These metro areas, analysts stated, are suffering from depressed job markets and huge inventories of foreclosures, REOs and other cheap houses for sale. They stated that the higher the level of foreclosure activity in an area, the more likely it will suffer from price depression during the year. Unemployment is also a factor that played a significant role in analysts' predictions for 2011.
According to them, areas such as Washington D.C. and several markets in Texas will experience increased values of homes in 2011, primarily because they have healthier job markets and their foreclosure rates and distressed properties under house auctions are not as many as other metro areas in the U.S.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.