Foreclosures to Blame for 18% Drop on Home Prices

by Peter Vernon on Foreclosure Crisis

Foreclosures have once again brought a huge impact on housing markets. Out of twenty cities in October 2007, 14 have shown declines in home prices. These declines have already reached up to 18% as compared to records from the previous year. According to David Blitzer, chair of Index Committee at Standard & Poor’s, this record was last exhibit in March of 2004.

Although there have been general declines in home prices in the entire country, Phoenix, Las Vegas and San Francisco have all made more than a remarkable 30% decline record. Miami, Los Angeles and San Diego followed the list. Even new additions welling up the market are Atlanta, Seattle and Portland already reaching about 10% home price decline.

A lot of struggling homeowners who cannot cover their mortgages end up losing their homes to foreclosures. Nearly 85,000 homes have been lost to foreclosures adding up to the already upwelling market. Many of these foreclosed homes have been up for short sales, and are easily sold at very cheap prices. The housing market has not been very promising for some time now and home sellers can only expect worse of the already ugly trend in sales.

Housing and foreclosure problems have been some of the core factors to the crisis our economy is now facing. For the past few years, the government has failed to address this problem causing it to get out of hand and making a lot of families to become homeless.

The housing mess has gone out of hand that it is already posting too much pressure to the coming new president as well as the Democrats. It only suggests how much attention the government should give to the existing housing problem. They should also be able to create ways to put the housing market at a stable state and hence, prevent more homeowners from losing their homes to foreclosures.

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