In This Foreclosure Market, No City is Safe

by on Foreclosure Crisis, Foreclosure Help, Foreclosure Rates, Foreclosures

We’ve been covering the foreclosure market and the impact it has had on cities all over the country. Despite the seriousness of the situation, and the widespread effects we’ve noticed, a few cities have seemed to defy the trend and remain relatively stable.

Until now, that is. Figures released today indicate that in this foreclosure market, no city is truly immune. Four cities that have been relatively unscathed since the housing crisis began – Dallas, Denver, Minneapolis, and Cleveland – have underwent pretty steep price declines over the past few months. The same can be said, of course, for the hard-hit cities like Las Vegas who have been dealing with the foreclosure crisis for years

Denver skyline

Prices for large metropolitan areas, on average, have fallen to 2002 lows, a collective fall of about 33% from 2006. This huge drop is actually larger than the one seen during the Great Depression, percentage wise.

What’s worse is that some experts in the field have started calling the market a “double-dip” market – in that the original crash was followed by a recovery, only to then in turn be followed by another dip.

What gives? Unemployment has fallen since its peak of 10.1%; more jobs are being added to the economy. Surely the economy is getting better, right? In some ways, it is, but we still have a massive backlog of foreclosed homes on inventory that are just depressing prices.

That, coupled with strict lending requirements, means that fewer of those homes are being purchased, resulting in a continual glut of supply.

This is why buying a home now – especially a foreclosed one – is a terrific idea if you can get approved. You have access to an almost-unlimited supply of homes to choose from, and can find a great discount if you shop through the distressed properties in your area. Even if you live in a city that we thought was untouchable.