The Highest Foreclosure Rates in the U.S.- By: Karim El Sheikh
While foreclosure rates at the national level are seeing better figures, some areas do not seem to be going along this trend. Indeed, some are even moving in the opposite direction and are actually rising up.
According to recent statistics, the city of Stockton, Calif., reported the highest foreclosure rates of any city in the United States. One out of 120 homes was hit with foreclosure in Nov. 2011. This figure is up from 20 percent from the previous month of October and nine percent from Nov. 2010.
Many experts point to one reason for this high foreclosure rate hitting for two consecutive months: Banks in the city have managed to churn out 65 percent more foreclosure auctions than the previous month.
What the Numbers Say
Stockton is not alone with its high foreclosure rates. It seems surrounding areas are affected by this phenomenon, too. In fact, the “Sunshine State” played host to nine of the 10 major metropolitan areas with the highest foreclosure rates in the country. To be counted, a city must have a population of more than 200,000. Other states such as Arizona, Florida and Nevada also reported high foreclosure rates.
It is quite surprising to note that these states are going against the national trend in the housing market. At the national level, foreclosures are down by as much as 14 percent from November and three percent from October. Foreclosures were filed at an average of one of every 579 homes in the country, resulting at around 215,000 foreclosed homes.
Banks from around the country seem to follow the ones from Stockton. They are moving foreclosed homes back into the market through auctions at such large numbers. This is set to develop as a trend for the next few months, according to real estate analysts. Foreclosure auctions are actually at a nine-month high in the month of November as a result of the surge of default notices that started in August.
What It All Means To You
All in all, the foreclosure scene is getting better... if you are buying. Of course, if you live in the hardest hit states and are trying to sell your home, it is not a good thing. With the market improving in most of the country, however, there is still a ray of hope for sellers.
Eventually, the market will work itself out and prices will start to climb back up again. Note that foreclosed homes are being bought today, which stimulates demand. Over time, property values will go up and hit the expansion phase. Given enough time, sellers will be in better positions than they are today.
Buyers, especially investors, on the other hand are in for a treat. With prices at an all-time low, now is definitely a good time to buy or invest. Even if the prices of foreclosed homes keep dropping, you already get a good deal if you decide to buy right now. In the end, what matters is that you know the situation before making a move.
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