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Housing Market Woes Expected to Continue for Some Time
By admin | June 4, 2008
While the first step in battling foreclosures relies on getting homeowners to be able to keep up with their mortgage debts, officials say the long term economic effects that have already been established by the surge in foreclosures could take many years to heal. With thousands more Americans in every state still primed to go into foreclosure over the next year, continuing the trend of the past 3 years, the housing market is sliding deeper into one of its worst slumps ever.
Foreclosure homes have also contributed to failing city economies in many heavily afflicted areas. Many foreclosed home are abandoned, and this leads to a proven increase in trash and crime in urban areas, which the city then has to address. In addition, foreclosures have a negative effect on the properties around them, but this doesn’t just mean homeowners suffer. The city is also unable to collect as much in property taxes when the value of property goes down across the area, and that’s certainly happening all over the country.
In April, foreclosures hit a record high for the month at 243,000 cases of foreclosure, a figure which is up 65% from last year. Experts believe the housing market will rebound, but it’s going to take a lot to happen first, mainly the slowing of foreclosures and the buy-up of the surplus homes on the market dragging down property values. Banks have become more willing to modify loans however, which many experts and economists is the first step towards really fixing the default and foreclosure problem.
Related Posts:
- Chicago Holds 2nd Highest Metropolitan Foreclosure Rate in Nation
- California Foreclosure Homes
- While Foreclosure Rise in January, Chicago Area Sees a Slowdown
- Bank Foreclosure Property, Recession Ravage a City
- Repossession Property Prices Fall, Affordability Rises
Topics: Foreclosure Investing | Comments Off
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