Prices of Foreclosed HUD Houses and Regular Houses Decline in Oregon- By: John Cutts
The prices of newly-built houses, bank foreclosed dwellings and HUD houses continue to decline in most areas of the U.S. August 2010 housing market data showed that Oregon is one of the top states in the country in terms of price depreciation.
The number of Portland repo homes and foreclosed dwellings in the whole state of Oregon continues to rise, which is partly the reason for the depressed prices of residential properties in the region, according to housing market analysts.
Including Oregon repo homes, foreclosures and distressed property sales, the state posted a price depreciation score of -6.3%. Oregon came in fourth behind Idaho, Alabama and Utah among states with the highest price deprecation rates. The top five is rounded off by Florida. Housing market experts have speculated that the expected rise in mortgage rates in the coming months is a big reason behind the continuous depression of residential prices in the state and in other areas of the U.S.
Nationwide home sales data released by CoreLogic showed that prices, including sales of distressed homes and properties on repo home listing, dropped by 1.5% during the month of August 2010 when compared with the same month in 2009. The decline follows a 0.6% rise recorded in July 2010 compared with July 2009.
When foreclosed bank houses, HUD houses and other distressed dwelling sales are taken out of the equation, home prices in the U.S. year over year posted a decline of 0.4% for the month of August 2010. States that recorded the highest home price appreciation, including distressed residential sales, are Maine, New York, Connecticut, Virginia and South Dakota.
According to real estate experts, mortgage rates have risen during the end of October as a result of investors' bonds profit-taking. Investors are reportedly worried that the Fed's next move will result in inflation. If they were proven correct, mortgage rates are sure to increase, analysts have revealed.
Housing experts have stated that any increase in mortgage rates right now will further depress the prices of houses in the U.S. Furthermore, the huge supplies of foreclosed properties have not shown any sign of abating, with HUD houses and bank owned properties continuing to enter the market. This, real estate experts have stated, will also bring prices down.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.